Principal repayments prior to completion.

This query is : Open

Velu (Querist)
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30 January 2009 Dear all

U/s.80C instalments of principal repayment of housing loans is allowed as deduction.

When the building is still under construction repayment of principal has started. Whether same can be claimed as deduction.

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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30 January 2009 The installments repaid to housing loan is allowed as deduction eventhough the building is under construction.

Only for interest it is divided as pre construction interest and post construction interest.

K V Subba Rao

K V Subba Rao (Expert)
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30 January 2009 You do not get any income tax benefit on the principal amount for the EMIs that you paid before getting possession of your house (as principal component can be claimed only after you get possession of the house

Visit http://www.raagvamdatt.com/Article121.html

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Velu

Velu (Querist)
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02 February 2009 Dear Mr. KV Subba Rao,

I studied the article referred by you. But the article seems to be personal view of the author. There is no legal provisions given by the author.

The same article also mentions that to claim principal repayments U/s.80C is available only if the house property is self occupied.

The above points were given by the author without substantiating with legal provisions.