I would like to know the exact position regarding the admissibility of interest on housing loan and repayment of housing which has been availed for the purpose of improvement/renovation of existing house. The details under loss from house property claim and principal repayment under section 80C need to be elaborated.
Interest benefit under Section 24 for new loan taken after 01/04/99 for the purpose of Renovation/Improvement for a SOP would be limited to Rs. 30000/-.
Repayment Benefit of housing loan under Sec 80C is limited to the Slab given under Sec 80C.
Thank you,
Regards CA. LOHITH.J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
Regarding the repayment of loan, my query is whether the repayment of housing loan procured for the purpose of improvement/repair qualify for deduction under 80C.
03 April 2011
Hi, In my opinion it should be allowed as a deduction as the Section apart from other things says
" Repayment of ANY loan borrowed for the purpose of Purchase , CONSTRUCTION of a residential HP from Govt Approved Institutions...........etc "
The word "Constuction" includes "Improvement/Repairs"
However you will also find the following in the same Secion 80C, which should not be mistaken.
"PAYMENT made towards the below will NOT be eligible for deduction under Sec 80C"
"the Cost of any addidtion, alteration, renovation or repair of the house property which is carried out after the issue of Completion Certificate by the Competent Authority after the HP or any part thereof has been occupied"
{ THIS IS ONLY FOR THE PAYMENT OF AMOUNT INCCURED TOWORDS addidtion, alteration, renovation or repair of the house property & NOT TOWARDS THE REPAYMENT OF LOAN TAKEN FOR THE SAID PURPOSE}
TO PUT IT IN A NUTSHEL, YOUR QUERRY OF REPAYMENT OF HOUSING LOAN FOR IMPROVEMENT/REPAIRS WILL BE ALLOWED.
Hope i have replied in complete detail, incase you still have any doubt, you could join into my Club " Lo Aca" where my other Proffessional Colleagues along with me would be able to help you out even more better.
Thank you
Regards CA. LOHITH.J B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons
CAclubindia
