Deduction u/s 80C
This query is : Resolved
24 March 2009
Please answer it urgently!!!
Case facts : i have original housing loan from ICICI bank. I have transfer my loan in sept 08 from ICICI to SBI & paid outstanding principal of Rs. 16L & shifted my loan. From Oct to Mar i have paid Rs. 80K on account of principal 65K & 15K on account of principal repayment to SBI.
My Question : How much i can claim in sec 80C?
Whether it 16L+15K = 16.15L or its only 15K.
In case of 15K then please give me the details of rule or section note or any other case law for that.
Case facts : i have original housing loan from ICICI bank. I have transfer my loan in sept 08 from ICICI to SBI & paid outstanding principal of Rs. 16L & shifted my loan. From Oct to Mar i have paid Rs. 80K on account of principal 65K & 15K on account of principal repayment to SBI.
My Question : How much i can claim in sec 80C?
Whether it 16L+15K = 16.15L or its only 15K.
In case of 15K then please give me the details of rule or section note or any other case law for that.
24 March 2009
16L is not the repayment of loan, it is just a transfer of loan from one bank to another bank.
Repayment is what you have paid in ICICI from April to Sept 08 + Repayment in SBI from Oct to March 09.
and further you can get dedcution u/s 80C for a maximum of Rs. 1L so no benefit for repayment of loan in excess of 1L.
Repayment is what you have paid in ICICI from April to Sept 08 + Repayment in SBI from Oct to March 09.
and further you can get dedcution u/s 80C for a maximum of Rs. 1L so no benefit for repayment of loan in excess of 1L.
24 March 2009
i support mr. tilak
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25 March 2009
Reply Urgently.........
But for ICICI it is repayment of principal sum. Ans as per sec. 80C & CIRCULAR NO. 9 /2008 [F.No.275/192/2008-IT(B) it is silent on this issue. Please see the bare note of circular:
(12) Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income from which is chargeable to tax under the head "Income from house property" (or which would, if it has not been used for
assessee's own residence, have been chargeable to tax under that head) where such payments are made towards or by way of any instalment or part payment of the amount due under any selffinancing or other scheme of any Development Authority, Housing Board etc.
The deduction will also be allowable in respect of repayment of loans borrowed by an assessee from the Government, or any bank or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long term finance for construction or purchase of houses in India. Any repayment of loan borrowed from the employer will also be covered, if the employer happens to be a public company, or a public sector company, or a university established by law, or a college affiliated to such university, or a local authority, or a cooperative society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act.
The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or
the cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the completion certificate by competent authority, or after the occupation of the house by the assessee or after it
has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Income-tax Act will also not be included in payments towards the cost of purchase or construction of a house property.
Where the house property in respect of which deduction has been allowed under these provisions is transferred by the tax-payer at any time before the expiry of five years from the end of the financial year in which possession of such property is obtained by him or he receives back, by way of refund or otherwise, any sum specified in section 80C(2)(xviii), no deduction under these provisions shall be allowed in respect of such sums paid in such previous year in which the transfer is made and the aggregate amount of deductions of income so allowed in the earlier years shall be added to the total income of the assessee of such previous year and shall be liable to tax accordingly.
But for ICICI it is repayment of principal sum. Ans as per sec. 80C & CIRCULAR NO. 9 /2008 [F.No.275/192/2008-IT(B) it is silent on this issue. Please see the bare note of circular:
(12) Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income from which is chargeable to tax under the head "Income from house property" (or which would, if it has not been used for
assessee's own residence, have been chargeable to tax under that head) where such payments are made towards or by way of any instalment or part payment of the amount due under any selffinancing or other scheme of any Development Authority, Housing Board etc.
The deduction will also be allowable in respect of repayment of loans borrowed by an assessee from the Government, or any bank or Life Insurance Corporation, or National Housing Bank, or certain other categories of institutions engaged in the business of providing long term finance for construction or purchase of houses in India. Any repayment of loan borrowed from the employer will also be covered, if the employer happens to be a public company, or a public sector company, or a university established by law, or a college affiliated to such university, or a local authority, or a cooperative society, or an authority, or a board, or a corporation, or any other body established under a Central or State Act.
The stamp duty, registration fee and other expenses incurred for the purpose of transfer shall also be covered. Payment towards the cost of house property, however, will not include, admission fee or cost of share or initial deposit or
the cost of any addition or alteration to, or, renovation or repair of the house property which is carried out after the issue of the completion certificate by competent authority, or after the occupation of the house by the assessee or after it
has been let out. Payments towards any expenditure in respect of which the deduction is allowable under the provisions of section 24 of the Income-tax Act will also not be included in payments towards the cost of purchase or construction of a house property.
Where the house property in respect of which deduction has been allowed under these provisions is transferred by the tax-payer at any time before the expiry of five years from the end of the financial year in which possession of such property is obtained by him or he receives back, by way of refund or otherwise, any sum specified in section 80C(2)(xviii), no deduction under these provisions shall be allowed in respect of such sums paid in such previous year in which the transfer is made and the aggregate amount of deductions of income so allowed in the earlier years shall be added to the total income of the assessee of such previous year and shall be liable to tax accordingly.
14 July 2009
closed
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