House Property

if bank passed loan on your name and property is also on your name than yes you can take deduction of principal amount of 1 lac u/s80C and interest amount of 1.50Lac u/s 24B.

Hi Pritesh!

As per your question it is clear that Mr. X has paid Rs. 6Lakhs to his father, however deduction is allowed for the amount paid as principal of housing loan and such loan should be taken from any financial institution.

So here Rs. 1 lakh can not claimed as deduction u/s 80C

If the property and bank loan is in Mr. X's name, any principal repayment made to bank can b claimed u/s 80C upto Rs. 1 lakh.

So, in this case it can be claimed.

1.Mr.X can not claim deduction u/s80C from Rs600000 payment  but from the loan of Rs 48lakhs

Mr.X  can claim deduction u/s80C for principal repayment. upto Rs100000  & Rs150000 for interest part u/s24b

2.stamp & reg. charges is paid by his father so,Mr.X can't cliam deduction u/s 80C

3.if Mr.X himself pay stamp duty & reg.charges then he will claim deduction u/s 80C 

thanks to all of u for your replies

Hi,

Though 1 Lac is paid from father's A/c, Mr. X could show it as Repayable amount to his Father & claim the Amount of Rs. 1 Lac towards Stamp duty etc U/ Sec 80C &  upto Rs. 1.5 Lac U/sec 24 towards Interest on Loan.

Thank you,

Regards

CA. Lohith. J

B.Com, ACA, CS, (ICWA), SAPM Hons, ITF Hons

Lohith jagadeesh sir

can u explain me how Amount of1 Lac towards Stamp duty etc claimed as deduction    

 U/Sec 80C as per sec 8oC only principal amount paid to notified institutions and banks are eligible for such deductions.

Amount paid towards stamp duty will not qualify for deduction u/s 80C. it will added in your property cost amount.

Dear Mr Pankaj

Please find below extract of Section 80C:  

(xviii)  for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

      (a)  any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

      (b)  any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

      (c)  repayment of the amount borrowed by the assessee from—

      (1)  the Central Government or any State Government, or

      (2)  any bank, including a co-operative bank, or

      (3)  the Life Insurance Corporation, or

      (4)  the National Housing Bank, or

      (5)  any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or

      (6)  any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or

      (7)  the assessee’s employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or

      (8)  the assessee’s employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society; or

      (d)  stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee,

                but shall not include any payment towards or by way of—

     (A)  the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or

     (B)  the cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or

     (C)  any expenditure in respect of which deduction is allowable under the provisions of section 24;

as per Section 80C (xviii)(d) stamp duty will qualify for deduction