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housing loan interest payment exemption in PMAY

Others 553 views 5 replies

hardik kidrah

5 Points Posted on 04 February 2019

I have availed the interest subsidy under pradhan mantri awas yojana. Now when i asked bank to provide me the provisional certificate for my loan repayment, they have added a clause saying "interest subsidy received under PMAY should be redcued from the interest to be claimed under 24(b)."

As this yojana has only paid me some portion of my interest subsidy and not in full, i should get the tax exemption for the interest payment i made during the FY. pls help

regards,
harshad
9920881098

Replies (5)

vaibhav

student

253 Points Posted on 04 February 2019

Certainly yes.
But you now can avail the interest deduction excluding the amount received as subsidy towards interest.

you cannot claim the tax benefit interest which was not born by you ( i.e. exclude the subsidy portion).

hardik kidrah

5 Points Posted on 05 February 2019

ok sir. so to provide you details, i got 230000 pmay subsidy and in current financials year, i paid around 79000 as interest on my housing loan. as this amount was paid by me, i should get the tax exemption on this amount but the bank clause says that i cant claim tax exemption until my total interest payement crosses 230000. this means, i have to wait for total three years (79000*3) to get the interest tax exemption. pls advice.

Narendra Kumar

other

299 Points Posted on 05 February 2019

For Rs. 79000 you can claim, but not for total amount.

hardik kidrah

5 Points Posted on 05 February 2019

ok, thanks sir.

Narendra Kumar Saraogi

ASSOCIATE

3 Points Posted on 21 August 2019

Sir,

How would you treat the PMAY subsidy amount directly deposited into the bank? I mean what accounting entries will take place to effect this transaction?