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Housing loan and tax claim

sudhir (Software Engineer) (43 Points)

07 December 2009

Hi,

I have bought a house(resale), I got the possession. I took housing loan for the same, my loan started from 3rd december 2009. I requested bank for delaying the EMI, bank accepted the same and agreed to start EMI from march 2010.

Can I claim the tax benefit for intrest (intrest from dec to feb and princial and intrest for march) in 2009-2010 income tax return.

Also is there any rebate on Stamp duty and other charges that I paid while doing registration of the property.

thanks,

Sudhir

please guide.

thanks,

sudhir

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13 Replies

Deepesh Jain (C.A (May 11 Batch)) (104 Points)
Replied 07 December 2009

There is no rebate for stamp duty or other charge

Interest is to be claimed on accrual basis hence u can claim intrest from dec to feb

ask for a certificate from the bank regarding interest accrued during the year

principle will be allowed on actual payment basis

in case of any query kindly revert back

sudhir (Software Engineer) (43 Points)
Replied 07 December 2009

Originally posted by :djtauraus
"	There is no rebate for stamp duty or other charge Interest is to be claimed on accrual basis hence u can claim intrest from dec to feb ask for a certificate from the bank regarding interest accrued during the year principle will be allowed on actual payment basis in case of any query kindly revert back	"

Thanks for the quick response. Somebody told me that there is tax rebate on stamp duty as well. Also I'll paying kind of Pre-EMI (intrest from dec to Feb) as my EMI will start from March 2010. Is it allowed to take rebate of Pre EMI in the same year. Sudhir

Max Payne (employed) (2569 Points)
Replied 07 December 2009

You will get deduction U/s 80C for paying stamp duty.. but if you claim this deduction, then this stamp duty will not be allowed to form part of your purchase cost when computing your capital gains if you transfer this house in fututre....

Its adviseable that if the stamp duty is large, dont claim the deduction u/s 80C, keep it as part of your cost of acquisition of the house, claim indexation benefit on the cost when you tranfer your house.. this will help you reduce your long term capital gains if you sell the house....

And assuming that the house is occuppoied by u, even the pre-EMI interest can be claimed as a deduction to a limit upto Rs. 150,000/- during this year on a due basis. If you let it out there will be no such limit on interest.

But as the above person said, you will get the deduction under 80C for principal of loan only in the year of actual payment of the amount.

Ansari (ca final) (444 Points)
Replied 07 December 2009

Originally posted by :G.K..
"	You will get deduction U/s 80C for paying stamp duty.. but if you claim this deduction, then this stamp duty will not be allowed to form part of your purchase cost when computing your capital gains if you transfer this house in fututre.... Its adviseable that if the stamp duty is large, dont claim the deduction u/s 80C, keep it as part of your cost of acquisition of the house, claim indexation benefit on the cost when you tranfer your house.. this will help you reduce your long term capital gains if you sell the house.... And assuming that the house is occuppoied by u, even the pre-EMI interest can be claimed as a deduction to a limit upto Rs. 150,000/- during this year on a due basis. If you let it out there will be no such limit on interest. But as the above person said, you will get the deduction under 80C for principal of loan only in the year of actual payment of the amount.	"

agree with G.K.

sudhir (Software Engineer) (43 Points)
Replied 08 December 2009

Originally posted by :Ansari
"	Originally posted by :G.K.. " You will get deduction U/s 80C for paying stamp duty.. but if you claim this deduction, then this stamp duty will not be allowed to form part of your purchase cost when computing your capital gains if you transfer this house in fututre.... Its adviseable that if the stamp duty is large, dont claim the deduction u/s 80C, keep it as part of your cost of acquisition of the house, claim indexation benefit on the cost when you tranfer your house.. this will help you reduce your long term capital gains if you sell the house.... And assuming that the house is occuppoied by u, even the pre-EMI interest can be claimed as a deduction to a limit upto Rs. 150,000/- during this year on a due basis. If you let it out there will be no such limit on interest. But as the above person said, you will get the deduction under 80C for principal of loan only in the year of actual payment of the amount. " agree with G.K.	"

Now things are clear to me . Thanks you all for answering the query.

NARENDER PAWAR (CA final Student) (337 Points)
Replied 08 December 2009

mr. Sudhir u can not claim u/s 80c of principal payment & int. also

because it will be allowed only actual payment basis

Shudhanshu Agrawal (Business) (2570 Points)
Replied 08 December 2009

There is no deduction for stamp duty paid under section 80C. Only principal amount is allowed as deduction under section 80C on payment basis where as interest is allowed on accrual basis under section 24.

Shudhanshu Agrawal (Business) (2570 Points)
Replied 08 December 2009

HARIHARA SUBRAMANIAN.S (CA Final ) (40 Points)
Replied 08 December 2009

Stamp duty, Registration fee and other charges can be claimed as deduction U/s 80C. and withrespect to the loan, you can claim interest alone as it is accounted on accrual basis and principal to be claimed only on actual payment

Sagar (Student) (142 Points)
Replied 08 December 2009

Yes u can claim the rebate of housing loan because interest can be claimed on accrual basis hence u can claim the rebate................

Bharat Khurana (Student) (153 Points)
Replied 10 December 2009

deduction of interest is available on due basis so you can claim loss under the head of house property on account of interest due

Bharat Khurana (Student) (153 Points)
Replied 10 December 2009

Originally posted by :NARENDER PAWAR
"	mr. Sudhir u can not claim u/s 80c of principal payment but you can claim loss under the head of house proeperty on account of interest because it is allowed on accrual basis	"

ravi (financial analyst) (21 Points)
Replied 03 November 2010

Hi, I bought a flat on N/A property, however no bank gives housing loan on these properties. so the builder has given 50% loan on total loan amount. my questions is can claim IT deduction on such a property. will the agreement of sale can be produce as a document of proof. the builder is not ready to provide any certificate because he thinks that he might have to pay income tax if he gives the certificate. please advise, Thank, Ravi.