Prematurity repayment of housing loan

u will not eligible for interest u/s 24(b) as well as U/s 80C benefits.

Hello,

Not agree with hardik

Prepayment of principal qualifies as a deduction under Sec 80C and hence for someone who is not utilizing the total deduction of Rs 1.5 lac, this would be useful.

As per section 80c:

80C (xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of-

a)....

b)....

c) repayment of the amount borrowed by the assessee

There is no specification that the amount should be due to the bank / financial institution and thus assessee would be eligible to claim deduction u/s 80C on pre payment of housing loan.

Mr.Vishal Goel

agar ap loan hi repayment kar dete hai to u/s 80c me kese claim hoga.

What Mr Goel means is that in the year of full repayment the assessee can claim the principal paid u/s 80C. I agree with him.