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Housing loan deduction

12 October 2020

I have availed housing loan in December 2017 and repayment started in Jan 2019. For availing loss of pay leave I have to pay 12 months EMI as advance in a single payment in Oct 2020 for the period Nov 2020 to Oct 2021. That is 5 months EMI Pertaining to this FY and 7 months EMI next FY. How can I claim under sec 80c (repayment of principal) and interest deduction. Whether I can divide and claim for two separate FYs.

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2 Replies

ayusmita (Tax consultant) (5890 Points)
Replied 13 October 2020

Principal amount comes under 80 c not interest
but for that particular year but the house property should not be sold within 5 year of its ownership
interest will be in hra as per section24

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Shivam RC (Student) (23683 Points)
Replied 13 October 2020

The repayment of Principal amount can be claimed as deduction under Section 80C of Chapter VIA of the Income Tax Act 1961 upto Rs. 1,50,000.

As far as the Interest is concerned, it is allowed as deduction under Section 24(b) from the NET ANNUAL VALUE (NAV) of the Income from House Property. Kindly note that if it is a Self Occupied Property, then maximum interest that can be claimed as deduction u/s 24(b) is restricted to Rs. 2 lakhs. However if it is a let out property, then there is no maximum statutory limit. Also note that the Interest is allowed as deduction on "ACCRUAL BASIS" and not on Cash or Payment basis. So you can avail the deduction of interest for the entire year irrespective of fact that you have actually paid it or not.

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