please guide me regarding claiming deduction against home loan ?
what would be the rule for claiming principal amount & the related interest on it. what if i will get the possesion for self use after 3 yrs from now...??
there is confusion regarding the total amount & the period upto which i can claim the following deduction u/s 80C & the interest amount under sec 24C.
thanks...
IT deductions are available after the possession is achieved. The pre-EMI (intrest component only) can be deducted via 3 installments after the possession is achieved. Principal amount is claimed under 80C while intrest under section 24.
Section 80C of income tax also covers the House loan, in which an assesse can claim deduction under this section which is up to 1 lakh. total capital for section 80C is one lakh. amount can not exceed the priscribe amount.
There is only one condition for claiming the principal amount is that house should be for residence, means you are living in that house for which you are claiming the amount.
Interest you are paying as part of EMI, it can be also claimable under section 24, and the maximum amount for that is 1.5 lakh.
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