Section 24 & repayment of housing loan

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Pankaj Sharma (Querist)
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20 May 2008 dear sir

how can i use section 24. what is the way

& in which section repayment of housing loan is located. in housing loan repayment of interest amount is deducted is is right.

R.V.RAO

R.V.RAO (Expert)
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20 May 2008 SEC 24 ALLOWS DEDUCTION OF INTEREST PAID ON HOUSING LOAN TO THE EXTENT OF
1.RS. 1,50,000/ P.A IN CASE OF SELF OCCUPIED PROPERTY AND
2.WITHOUT ANY LIMIT ON LET OUT PROPERTY WHEN WE SATISFY THE CONDITIONS U/S 24.

REPAYMENT OF HOUSING LOAN IS ALLOWED AS DEDUCTION TO A MAXIMUM OF RS ONE LAKH P.A UNDER SEC 80 C (AMOUNT OF DEDUCTION OF RS ONE LAKH P.A IS EITHER FOR ANY OR FOR ALL DEDUCTIONS PUT TOGETHER U/S 80 C, LIKE TUTION FEES,NSC,LIC,DEPOSIT IN SCHEDULED BANKS FOR 5 YEARS,DEPOSITS UNDER SENIOR CITIZEN SAVINGS SCHEME ,PRINCIPAL OF HOUSING LOAN ETC...)
R.V.RAO

Rushikesh

Rushikesh (Expert)
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20 May 2008 Please also let know, can we avail this deduction of sec80C for repayment of housing loan even if we've not got the possession of the house property?

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CA. Vineet Grover

CA. Vineet Grover (Expert)
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20 May 2008 Hi Rushikesh,

YOu will not be able to claim repayment of housing loan u/s 80 until and unless you get possession of the property.

Rgds/
Vineet

Rushikesh

Rushikesh (Expert)
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04 June 2008 But there are many builders who say that we can take the deduction for interest and principal also, even if the construction is not completed within taht FY, provided teh full disbursement for the loan is done. But, I am not sure of the same. Please give me your opinion..

Rushikesh

Rushikesh (Expert)
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05 June 2008 I've got the answer to this query.
In Section 80C, the completion of the property is not the criteria, also, the Act says that " the Income of which shall be chargeable under the head Income from House Property" , it does not say " charged"; Hence the principal amount can be taken as deduction, even if it is part disbursement.
Similarly for the interest component, the criteria is completion not possession, hence it can be claimed without possession.
Please refer to the cases Decision of ITAT in case A. D. Mehndroo. vs Assessing Officer 52 ITD 138 and ITAT ,Pune in case of Krishnan Kuppuswami. vs Income-Tax Officer ,47 ITD 134 .