Section 80c

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72 Points Posted on 22 March 2013

Plz reply.

We can claim deduction under sec 80c for the repayment of principal amount of housing loan and deduction under sec 24b for interest on housing loan.

Now for claiming deduction under sec 24b i.e. interest, possession of house property or completion of construction(in case house is being constructed) is mandatory and we get deduction of pre possession and pre construction interest in five installments.

Now my query is that for claiming of deduction u/s 80c for repayment of principal is possession mandatory or we can claim it w/o having possession of the property.

Plz reply as early as possible.

Thanks in Anticipation.

Replies (3)

Sumit Grover

Chartered Accountant

2575 Points Posted on 22 March 2013

In my opinion, it should be taken after the Property is possessed/acquired, since the expression used in section 80 C is "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)"

After interpretating the same, it may be opined that the income is chargeable under head "income from house property" after possession only.....Though, the words used under section 22(charging section of house property) is "Owner"...But practically, generally onwership is concluded after the date of possession(i.e. date of registry).