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Housing principal paid under construction period

M Sairam (Semi Qualified CA) (421 Points)

09 March 2016

can we claim house loan principal paid during under construction period in the year when he gets possession of that house?

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jaya krishna (Chartered Accountant) (262 Points)
Replied 10 March 2016

u can claim deduction only after completion of construction not during construction of house property in 5 equal annual instalments starting from the year in which the house is purchased or the construction is completed.

M Sairam (Semi Qualified CA) (421 Points)
Replied 10 March 2016

Hi Jaya Krishna,

you are correct but telling about interest on home loan paid during preconstruction period, i know this.But, I want to know about Principal amount of loan paid during above said period?

jaya krishna (Chartered Accountant) (262 Points)
Replied 10 March 2016

principal amount also after completion of construction not during the period of construction of house property as per sec 80 c.

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Vishal Goel (Chartered Accountant) (1688 Points)
Replied 11 March 2016

Hello,

Tax benefit of home loan under section 80C for repayment of principal part of the home loan is allowed only after the construction is complete and the completion certificate has been awarded. No deduction would be allowed u/S 80c for repayment of principal for those years during which the property was under construction

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