Special Festive Offer: 10% OFF Across All CCI Pro Membership Plans. Subscribe Now!

Housing Loan from Credit cooperative society

2304 views

Save Share

Deepak

Financial Analyst

44 Points Posted on 31 July 2021

Loan taken from Credit cooperative society for construction of house. Is EMI paid towards repayment of Loan is eligible for deduction u/s 80C Principal amount & 24 Interest amount?

Replies (4)

Quick Summary

This discussion explores whether EMIs paid on housing loans taken from a credit cooperative society are eligible for tax deductions under Section 80C (principal) and Section 24(b) (interest). While initial responses suggest eligibility, a closer look at the Income Tax Act definitions indicates that loans from cooperative credit societies might not fall under the specified categories for these deductions. Therefore, claiming deductions for principal repayment under 80C may not be permissible.

CMA Poornima Madhava

CMA

9106 Points Posted on 31 July 2021

Yes, deduction can be claimed u/s 80C as well as 24(b) even in respect of loan from co-op society I think.

CA. Sourav Sarkar

Chartered Accountant

16188 Points Posted on 31 July 2021

Yes deduction is available

Nidhi

Chief Accountant

1673 Points Posted on 31 July 2021

Yes, you can claim deduction u/s 80C principal as well as 24(b) interest

SAI

PAY & ACCOUNTS OFFICER

22 Points Posted on 12 July 2023

The deduction will also be allowable in respect of re-payment of loans borrowed by an assessee from the Central Government or any State Government, or any bank, including a cooperative bank, or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long term finance for construction or purchase of houses in India.

As per the definition above, C0o-operative credit socieites are not coming under the above categories. Hence, repayment of principal amount not to be allowed under Section 80(C)