under which section we can take the benefit of penalty paid for non-payment of home loan??
Had it been case of interest paid on home loan, then we could take benefit under Sec. 24(b) of income tax act. Can we add this amount towards cost of improvement of house while calculating capital gain??
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Penalty paid on home loan eligible to be claimed??
Replies (4)
By letter of law and spirit and scheme of the legislation, penalty paid for housing loan should not be allowable under section 24.
Regards,
No u can not!! no section shall provide what u are looking for.
Agreed with Nikhil
Penalty is charged for non payment of loan amount which has no relation with the property and also penalty even does not add or alter anything to the property. Expenditure of a capital nature incurred in making any additions or alterations to the capital asset after the assessee had became its owner can form part of Cost of Improvement as per section 55.
So in this case you cannot add the said amount to the property as cost of improvement.
I don't think you can claim that.
it is default on your part, income tax doesn't allow that
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