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Tax exemption

Tax planning 615 views 3 replies

RAHUL

N/A

24 Points Posted on 19 February 2012

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...

Replies (3)

khushal

ACA; CS Professional Gr. II & IV Cleared

63 Points Posted on 20 February 2012

As per IT act, principal amt can be claimed under sec 80C & the interest amt can be claimed under sec 24.. The principal amt should not exceed 1lac Rs.

meabhijit

Project Manager

172 Points Posted on 20 February 2012

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.

Megha Masta

CS (final)

53 Points Posted on 20 February 2012

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.