Dear All,
Banks give home loan agreement and mention the sanctioned amount in it towards the acquistion of the property.
After signing this home loan agreement Bank ask customers if they wish to take insurance to cover the home loan risk. This insurance can be converted into EMI. Thus EMI paid are EMI towards acquisition cost + EMI towards insurance.
Now the internal system of the Bank tells that the Sanctioned amount is Amount towards acquisition + Insurance without handing over revised home loan agreement.
Thus if say an assessee has loan agreement with sactioned amount of Rs 24,80,000 and insurance taken as Rs 60,000 his sanctioned amount as per the bank internal system changes to amount more than rs 25,00,000.
Thus the ceiling of Rs 25,00,000 as in section 80EE is crossed.
Banks say that they are bound by the system and their system tells that the amount of loan sanctioned is greater that Rs 25,00,000 just because insurance has been taken in the form of EMI.
Can an assesse claim section 80EE in this case and what certificate does the Bank need to provide.
Thanks and Regards,
Amit
CAclubindia
