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INTEREST ON HOUSING LOAN & SECTION 80C

thanumalayan (senior assistant) (111 Points)

10 February 2008

Interest on housing loan for the accounting year comes around Rs. 2,25,000 and I contructed my house on January 2006. How much the interest to be deducted in House Property Income? Shall I deduct such interest in section 80C?

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29 Replies

rams (consultant) (72 Points)
Replied 10 February 2008

maximum 1.5 lacs u can claim. + repayment of loan. -regards: ramalingams mysore

K Palaniappan (CA Practice ) (38 Points)
Replied 10 February 2008

IF YOUR PROPERTY IS SELF OCCOPIED , THEN INTEREST IS LIMITED TO 150000/- AND CAN BE SET OFFAGAINS OTHER INCOME . IF YOU WOULD HAVE LET OUT, NO LIMIT AND FULL AMOUNT OF INTEREST CAN BE CLAIMED. THE INTEREST IS NOT ELIGIBLE FOR 80 C DEDUCTION. BUT REPAYMENT OF PRINCIPAL CAN BE INCLUDEDIN 80 DEDCUTION MAXIMUM UP TO 100000/-

Ashish Ranpara (TAX CONSULTANT) (369 Points)
Replied 10 February 2008

BENIFIT FOR DEDUCTION OF INTEREST ON HOUSE PROPERTY FOR LOAN TAKEN CONSTRUCTION OF IT IS AVAILABLE FOR A CONSICUTIVE OF FIVE YEAR AFTER THE CONSTRUCTION IS COMPLETED AND DEDUCTION U/S. 80C IS NOT AVAILABLE

CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 10 February 2008

If the house is self occupied, You can claim interest of Rs.150000/- u/s 24. You can claim the repayenmt of principal u/s 80C upto a max of Rs.100000/-. If the house is let out there is no restriction on claiming interest u/s 24. The actual amount of interest paid can be claimed as deductiion.

Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 10 February 2008

The real confusion in the minds of saried people generally is this that the deduction of interest is from salary income .BUT ACTUALLY IT IS A CASE OF COMPUTATION OF LOSS FROM HOUSE PROPERTY AFTER ALLOWING DEDUCTION FOR ELIGIBLE INTEREST . THEN LOSS IS SET OFF FROM SALARY INCOME. NET EFFECCT MAY BE SAME.

1 Like

Gurmet Siingh (Chartered Accountant) (413 Points)
Replied 10 February 2008

If ur property is Self Occupied & u have bought loan on or after Apr.1'1999 then u can get deduction for Rs.150000 under Income from House Property.otherwise only Rs. 30000.

M.Sriram Shenoy (CA Final) (814 Points)
Replied 11 February 2008

Self Occupied property is eligible for interest deduction of Rs.150000. If it is let out, then whole amount of interest paid during the year can be claimed.However, only principal amount of loan repaid is eligible for deduction u/s. 80C upto Rs. 1 lac and not the interest amount.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 11 February 2008

u adjust in House / property income 1.5 lac intrest is O.K but principal amount is in 80 C,Not Intrest

CA. Kirti S. Ganatra (Service) (1461 Points)
Replied 12 February 2008

If i had paid Stamp Duty and Registeration Fees on time of Buying FLAT. Will i get deduction U/s. 80C

K R Ramesh (Service) (201 Points)
Replied 13 February 2008

Hi I have similar type of query. Can an employee take the benefit of Interest Payment (u/s 24) on repayment of housing loan for 2 houses. Out of which one is self occupied & the other is vaccant. If yes, what is the limit?

1 Like

kabra.anil (CA Practice ) (15 Points)
Replied 11 March 2008

U/S 80 c up to which amount of pricipal repayment is allowed. I think Rs. 20000.

Pl. advice

(Guest)

YOU CAN CLAIM UPTO Rs.1 LAC U/S 80C WHETHER IT IS PREPAYMENT OF HOUSING LOAN OR TUITION FEE OR ELSS INVETMENT. THE MXM LIMIT IS 1 LAC.

O.D.SHARMA (DGM-F & A) (1734 Points)
Replied 18 March 2008

intrest part is not covered in 80C.

(Guest)

Can an individual claim exemption w.r.t. Housing Loan if he has taken 2 housing loans with different banks for constructing 2 different houses. is he eligible for exemption one house is self occupied and the otherone is let out.

Please clarify..