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Hba-deduction?

19 February 2014

Dear CCI friends,

HBA-House Building Advance is claimed deduction u/s 80C .Why cannot we claim deduction of this amount of HBA u/s 24? As in sec 24 we claim deduction for the interest on housing loan,then HBA can be deducted here itself ,why in 80C? Please clarify my query soon.

Thanks in advance.

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@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 19 February 2014

S/80 C allows for deduction made in relation to Ptchase / Contruction of home, so HBA is one sort of payment made toeards P/C of house so deduction is allowed.

However u.s 24(b) deduction is allowed w.r.t. intersest payment on loan taken for P/C of house & also this is allowed only if contruction is completed.

Thx