80 c deduction of housing loan principal repayment

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Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2016 if the assessee taken Housing loan from Patsantha (not Bank) , then payment of Princiapal amount is allowed deduction or not? if yes then under which section and how?

Ganeshbabu K

Ganeshbabu K (Expert)
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05 February 2016 They wouldnot qualify for tax benifit as loans only from notified institutions and banks are eligible for such deductions,

My opinion is as per Section 80C(2)(xviii) of the act

Querist : Anonymous

Querist : Anonymous (Querist)

05 February 2016 then what to do? and how to take deduction in that situation ?

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Ankur Singhal

Ankur Singhal (Expert)
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05 February 2016 Dear
Housing loan from Banks / Financial Institutions:
You can borrow money from any Bank, NHB, LIC, Central Government or State Government or any Public Company carrying on the business of providing long term loan for purchase or construction of house property. Repayment of such loan qualifies for deduction under section 80C. Only, the principal portion of the repayment amount is eligible for deduction.

Ankur Singhal

Ankur Singhal (Expert)
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05 February 2016 Dear
Pls explain what is pstsantha