Principal repayment of house

Tax queries 429 views 1 replies

Hey all....

my frnd is planning to buy a flat....which will cost him around 25,00,000...and possession wl be in Dec 2012.He is himself making a payment of 15,00,000 as his own contribution.....my ques is that can he get the deduction u/s 80C as repayment of principal amount.......i got the doubt bcoz amt that he is gng 2 pay is installment amount and constuction is not yet completed......

n if yes....what document does he require to submit to the HR...


Plz guys help me out on this........

bye, hv a good day....


Aditi

Replies (1)

Dear Aditi,

 

If he has taken a loan from a Bank or Financial Institution then he can claim the Principal Amount of Loan repaid. But he will be eligible to claim the Principal amount repaid as a deduction u/s 80C only when he gets the Possession of the Flat, not when the flat is under construction.

 

 

Regards,

Devendra Kulkarni


CCI Pro

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