Hsg loan interest

Others 907 views 6 replies

Pooja

Accountant

103 Points Joined August 2012

Help me please

I aquired house in March 10 and sold it in March 13

Can I take benefit of Deductions of hsg loan interest and principle in march 13???

Replies (6)

Ankit

CA CS

3064 Points Joined June 2009

Yes Pooja...you can for that year

CA SUKSHAM ARORA

569 Points Joined February 2014

ACCORDING TO ME

YOU CAN TAKE BEMIFIT OF LOAN INTEREST PAID & PRINCIPAL PAID IN CASE YOU HOLD THE PROPERTY IN THE RELEVANT F.Y. U/S 24(b) & 80C RESPECTIVELY AS U MUST BE DOING IN THE EARLIER YEARS OF PAYMENT

Mihir

Wealth Manager

5293 Points Joined December 2008

If the assessee has transferred the property within 5 years of acquisition/construction, then 1) no deduction u/s 80C (principal) shall be allowed of repayments made during the year, 2) the aggregate of deductions u/s 80C (principal) availed earlier shall be deemed to be the income of the assesee in the year of transfer.

Mohammad saifee

Entrepreneur

72 Points Joined November 2010

Miss Pooja, you cannot take benefit ..because you were not a owner of such house at the ems of the relevant previous year.

Stranger

5531 Points Joined December 2013

Originally posted by : Mihir
	If the assessee has transferred the property within 5 years of acquisition/construction, then 1) no deduction u/s 80C (principal) shall be allowed of repayments made during the year, 2) the aggregate of deductions u/s 80C (principal) availed earlier shall be deemed to be the income of the assesee in the year of transfer.

Besides, housing loan interest deduction under section 24(b) is also not available for the year of sale as ownership is necessary but it won’t be reversed like 80C. Moreover, you will be able to claim the interest as cost of improvement for capital gain purpose [Refer ACIT Vs. C. Ramabrahmam (IT APPEAL NO. 943 (MDS.) OF 2012)]