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Housing Loan from Credit cooperative society

Deepak (Financial Analyst ) (27 Points)

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?

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4 Replies

CMA Poornima Madhava (CMA) (13097 Points)
Replied 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.

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 31 July 2021

Yes deduction is available

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Nidhi (Chief Accountant) (3150 Points)
Replied 31 July 2021

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

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SAI (PAY & ACCOUNTS OFFICER) (26 Points)
Replied 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)