I have sold my house within 3 years of purchase with short term gains .For the last 2 years i have been taking both Principal (Rs 1 Lakh) and Interest (Rs 1.5 lakhs) benefit on my Home Loan ,
Now what all do i have the payback to the IT authorities ? Is it both Interest and Principal benefit or only Principal benefit taken over last 2 years ?
Would appreciate clarification .
Dear Sir,
Interest dedution is allowed u/s 24 & it NOT related with the period for which the house is held. - Nothing is to be disallowed.
Principal deduction is allowed u/s 80C & it has this condition of holding the property for 5 years...since this has not happened, so now the amount of principal which was allowed as deduction earlier will be taxable & no deduction will be allowed in respect of payment of principal in the current FY..
If u have claimed Rs. 2 lacs in last two FY as a deduction then Rs. 2 Lacs will be your income for the current year.
Amir, Thanks for the clarification
CAclubindia
