Interest component of Hosing loan

For Interest component you can get deduction under section 24(b) Income tax Act in 5 equal instalments from the year of completion of construction or purchase of House Property as the case may be.

1) You can get this deduction by filing your Income tax return with department from this financial year.

2) You have get the deduction from the IT department by filing the return not from your employer. Employer no way concerned with your personal Income Tax as I can understand from your question. 

Originally posted by : RAMANJU
	For Interest component you can .........

Thanks ramanju;

What I specifically wanted to know that If I can claim deduction in current year of whatever interest I paid in this financial year? Suppose I paid 1 lakh interest in financial year 09-10 and I am getting possession in March 10 can I claim deduction on this entire 1 lakh from my income of 09-10. I do understand that the interest of past years will be spread to 5 years.

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Rgrds
Anand

Hey!!

All Gurus, I need a reply or have I asked a very difficult question?

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Rgrds
Anand

Dear Anand,

Let me tell u that unless the property gets constructed the repayment of principal u/s 80 C is not allowed...

U have claimed it is a separate thing...

Interest of 3 years will be allowed in 5 equal annual installments as u have mentioned i:e 20% in current FY..

Further interest & principal paid in the current FY will also be allowed...

Both (current + previous years) can be allowed by ur employer based on documents u provide while computing ur Income for the TDS purposes........I mean it's not that ur employer will deduct TDS & ask u to claim refund  from the department...

Originally posted by : Amir
	Dear Anand, Let me tell u that ..

Thanks Amir for your reply.

From your reply I can comprehend that in current financial year I would be entitled for
1) Complete deduction of whatever interest I paid towards the housing loan in current financial year

2) 20% of whatever interest I paid in last 3 years.

And I need to submit corresponding docs to my employer who will make the deductions accordingly and I don't need to income tax authority to claim deductions.

Please correct me if I have misunderstood anything.

Thanks once again

Dear Anand,

U get it perfectly brother.....:))

you have to file your income tax return to get the benefit. you are giving details to your employer so that the TDS deducted by him is done correctly after considering the interest part. so, give details to your employer and file income tax return before due date to get the benefit