Prepayment of housing loan

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Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 Is Prepayment of Housing Loan allowed as deduction under income tax act?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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06 April 2013 Yes, principle payment allowable under section 80C and interest repayment allowable under section 24(b). And in case if any pre-closure charges collected by the bank then such pre-closure charges doesn't allowable as deduction under income tax act.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 I am asking about prepayment of loan and not pre-closure charges.

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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06 April 2013 I.e you mean pre-payment means paying of instalments in advance. Yes, it also eligible for deductions.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

06 April 2013 Under which section?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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06 April 2013 Principle amount under section 80C and in case of any interest portion then section 24(b) for such interest amount.

OM SAI SRI SAI JAI JAI SAI