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Deduction u/s 80c (repayment of house loan)

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kunal (Querist)

28 December 2012 sir ,
can we claim deduction of repayment of principle amount of house loan u/s 80c if,
house is under construction??

@VaibhavJ

@VaibhavJ (Expert)

28 December 2012 Hi

No. You can claim deduction from the Financial Year in which construction is complete.

Thanks

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CA Ayush Agarwal

CA Ayush Agarwal (Expert)

28 December 2012 Well, you can avail the tax exemption only when the construction is completed. In this case the Pre- Emi is paid while the house is under construction. So, you cannot use the Pre-Emi as the Tax deduction source. Once the construction is completed, the total Pre-Emi interest paid can be availed as exemption in five equal instalments in the subsequent years

For example, if you have paid Rs.100,000 as the pre-EMI, then Rs.20,000 will be shown in the next five years as tax deduction. Note that pre-EMI is only the interest paid during the period. If you have paid any principal amount, that is not eligible for the tax deduction

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