PRINCIPAL REPAYMENT UNDER SECTION 80C

Tax planning 3284 views 11 replies

Gupta B Gullapudi

PRACTICING CA

42 Points Joined January 2008

Can anyone suggest me on the following:

A person is having two residential houses situated in two different cities. one is self occupied and the other one occupied by his parents. on both the houses he has availed loans in such a case can he claim deduction of prinicpal payments of both the houses under section 80 c , if so pl... suggest case laws.

thanking you in advance

Replies (11)

Guest

428330 Points Joined August 2012

yes he can claim deduction for both of the house because the section says that an assessee is eligble for claiming deduction under this section when he has paid any sum in relation towards the repayment of princpal the income from which is chargable under the head 'income from House Property".

M.Sriram Shenoy

CA Final

814 Points Joined January 2008

Under Sec 80C, you can very well claim the principal portion paid in respect of housing loan for any number of houses in your name, BUT BUT such deduction is ceiled to a maximum limit of Rs.1,00,000 as given by sec 80C. At present, i am unable to quote any suitable case laws regarding this.

Srinivas Sharma KN

Tax Consultant

292 Points Joined February 2008

Yes, he can claim on both the houses.

Gurmet Siingh

Chartered Accountant

413 Points Joined September 2007

Yea can claim on both the houses but the limit is only Rs.100000/-

ravi sankar

Chartered Accountant

157 Points Joined October 2007

yes you can claim dedu u/s 80CC upto Rs. 1 lac for repayment of "principal" portion only. Of course the overall ceiling limit of 80CC is Rs. 1 lac. The repayment of "interest" portion is governed by "Income on House property" which varies the deductions for self occupied property and rented property. You still can claim the deduction of interest paid even if the House property income is being deemed to be "nil" if the property is self occupied. The resultant negative from the house property income can be adjusted against suplus taxable income under any other head (per sec 64) The new ITR4 form in this respect has give clear format for this purpose.

MOHAN G

CS Final

629 Points Joined January 2008

YES, THAT PERSON CAN CLAIM DEDUCTIONS AGANIST BOTH THE HOUSES

Guest

428330 Points Joined August 2012

what is individual limit of deduction under section 80.

Arun Raj

Articles assistant

28 Points Joined June 2009

Whether a person, who is repaying the principal amt, can claim the it under 80C even if it is in the name of three brothers(including the asessee himself). But the only earning person among the three is the assesee.

CA. Gurdeep Singh Chawla

C A

7080 Points Joined June 2007


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he can claim

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Manager

64 Points Joined April 2009

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CA. Rashi Goyal

Chartered Accountant

512 Points Joined December 2008

"Whether a person, who is repaying the principal amt, can claim the it under 80C even if it is in the name of three brothers(including the asessee himself). But the only earning person among the three is the assesee."

Yes, he can claim but at time of assesment he has to prove that he has taken the burden of repayment himself.