GOOD DAY,
one of my client is repaying housing loan since 6 yrs.the loan is borrowed for plot purchase. Now, is this housing loan interest n principal is eligible for deduction u/s 24 and 80c respectively. pls guide.
tnx
S.RAMA (BOOK KEEPING & TAX CONSULTANT) (88 Points)
12 July 2019GOOD DAY,
one of my client is repaying housing loan since 6 yrs.the loan is borrowed for plot purchase. Now, is this housing loan interest n principal is eligible for deduction u/s 24 and 80c respectively. pls guide.
tnx
Manish Rawat
(35 Points)
Replied 12 July 2019
S.RAMA
(BOOK KEEPING & TAX CONSULTANT)
(88 Points)
Replied 12 July 2019
TNX FOR THE TIMELY REPLY.
Sugandha Shetty
(student)
(94 Points)
Replied 12 July 2019
No, deduction cannot be claimed u/s. 24(b) or 80C for loan repayment over plot.
S.RAMA
(BOOK KEEPING & TAX CONSULTANT)
(88 Points)
Replied 12 July 2019
However, there is a clause like the deduction on interest is limited to Rs. 30,000 instead of Rs 2 lakhs if
a. The loan is taken on or after 1 April 1999 and
b. The purchase or construction is not completed within 5 years from the end of the FY in which loan was availed( in case loan borrowed before fy2016, the period of completion is restricted to 3yrs)
In my client case, the loan repayment starts from fy2013. so till now, no construction is started ..so if iam right, the eligible interest deduction in this case would be limited to 30000/-. pls confirm. tnx
Sugandha Shetty
(student)
(94 Points)
Replied 12 July 2019
Only after your construction of house is completed, then you can think of any deduction be it 30000/-
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