Mortgage loan interest and principal under which heading to be deducted

Sir/Madam

For last financial year my client  paid

Rs 2 lakhs as principal and 

Rs 7 lakhs as interest 

The loan is taken on mortgage of client's apartment

Can it be considered housing loan?

So when declaring IT under which section and how much can be claimed as deduction

  1. Re-payment of housing loan etc
  2. Interest payable on loan for residentials house property (u/s 80EEA )
  3. Interest on loan taken for Residential House (u/s 80EE)

Which section will apply? and how much?

Thanks a lot

Shanthi

Replies (10)
Quick Summary
This discussion explores whether mortgage loan interest and principal payments can be deducted under housing loan sections (80EEA/80EE) or as business expenses. The consensus is that if the loan, even if secured by a residential property, was taken solely for business purposes and the funds were used for business operations or expansion, the interest paid should be treated as a business expenditure. Mortgaging a property is considered additional security, not an indicator that the loan is for housing renovation.

For what purpose the loan was taken?

Sir it  was solely for business purposes. Thanks

Take the interest as expenditure in business. You cannot avail it under head house property.

Thanks Sir once again

You are welcome.                       

Sir,
How its possible to book expenditure under business.
Bcoz, it's taken as mortgage then its consider as Drawing...

please correct me if I'm wrong..

Loan is taken for business purpose. Mortgaging house property is additional security given to bank. The loan amount is utilized for running/expansion of business, so the interest paid for it is business expenditure.

Okay Sir, It's right.

I'm wrongly understand the mortgage as renovation...

You are welcome.                

IMortgage loan cannot be taken as a deduction item

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