Tax exemption on House Loans

Tax planning 852 views 4 replies

Johnd

Estimator

28 Points Joined August 2009

If I take a loan for repairing or extending the house which I am staying, can I get any income tax exemptions?

In this case the house is situated in the land belongs to my mother. She has already prepared the will stating that the land and house will come to me on her death.

My Tax consultant says no chance to get any tax exemptions since the land is in my mother’s name and not in my name. But for the similar situation one of my friend was told by a bank that 50% income tax exemption can get.

Can you please confirm that, whether I can get any kind of income tax exemptions in this case?

Replies (4)

Singh Ram Malik

CA FINAL STUDENT &Article Assistant

59 Points Joined July 2009

CAN SOME ONE TELL ME ABOUT SECTION 140A FOR SELF ASSESSMENT TAX

IN DETAIL , WHEN WE NEED SELF ASSESSMENT

Krutesh Patel

ACA

727 Points Joined July 2009

If we take loan for constructing house, we are not concerned with ownership of land. The main thing is you must utilize loan amount for purchase of house. In such case interest paid on such housing loan will be allowed as deduction under head house property upto limit of Rs. 1,50,000 if house of self occupied. If you constuct house, deduction will be allowed from the year in which construction gets complited. The interest prior to completion of construction, you will get such deduction 1/5 after completion. You will get deduction of repayment of principal amount under 80C. For details please, see Sec 24 of Income tax Act,1961