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Personal loan for house construction from bank .... Principle repayment eligible for 80c

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ramesh

Accountant

261 Points Posted on 06 September 2021

Personal loan taken for construction purpose from a bank. Principle repayment th eligible for sec 80c deduction? Any conditions to claim

Replies (3)

Quick Summary

This discussion explores whether the principal repayment of a personal loan taken for house construction is eligible for deduction under Section 80C. The consensus is that it is, provided you can prove the borrowed funds were used for acquiring or constructing the property. Maintaining a fund flow statement to demonstrate the one-to-one utilisation of loan funds for construction is suggested as a way to substantiate your claim.

JGM

Knowledge Sharer

443 Points Posted on 06 September 2021

You can claim deduction under section 80C in respect of principal repayment so long you are able substantiate that the borrowed funds were utilised for the purpose of acquiring / constructing the property.

ramesh

Accountant

261 Points Posted on 06 September 2021

Retired government teacher constructed house with his retirement funds. At the finishing of the constitution he fell short of funds so he took 9 lakhs personal loan from SBI where he is having pension account. How can he prove that ...we won't expect a letter or something else from the Banker ...