07 July 2015
Mrs. X has applied for home loan and the same was sanctioned in the month of 06/2013 for construction of new house. First installment of the same received in the same month. This is the only property Mrs X held. She is Govt. Teacher and assessed to income tax. In the year 2013-14 around 64000/- interest paid. Certificate to be obtained from the bank. EMI for loan re-payment started from April 2014. During the year total amount of interest paid comes to Rs. 208619/ and principal Rs. 58981/- (EMI) 22300/- per month). Employer has given benefit of Rs. 200000/- towards interest under section 24B and principal under section 80C. Details mentioned in form 16 issued by the employer. As per section 24B interest paid prior to starting EMI will be claimed as deduction in five equal installments. Since limit is exhausted she is not getting benefit of the same in AY 15-16. Return for the AY 14-15 already submitted online and assessment order received. In this year Rs. 39800/- (approx..) paid as income tax. Not claimed any deduction of interest on home loan in this AY. Now, I came to know that in addition to deduction entitled under Section 24B, section 80EE allowing deduction in respect of interest on loan taken for residential house property applicable for the assessment year 2014-15 and 2015-16 subject fulfillment of following conditions: Assessee is an individual - Yes. He has taken loan - Yes Loan is taken for acquisition of residential house property.- For construction of house property. Loan is taken form a bank - Yes Loan has been sanctioned by the bank during April 2013 to 31.03.2014 - Yes in June 2013 The amount of loan sanctioned for residential property does not exceed Rs. 25 Lakh - Yes (2150000/-) The value of residential house property does not exceed for Rs. 40 lakh - yes (estimation for construction is below 40 lakh) The assessee does not own any residential house property on the date of sanction of loan. - Yes till dte only one property. If the above condition are satisfied, the assessee can claim deduction under section 80EE. Deduction is available in respect of interest payable on the above loan or Rs. 1 lakh, whichever is less. Deduction is available for the assessment for the year 2014-15. If however, interest payable for the previous yer 2013-14 (i.e. the assessment year 2014-15) is less than Rs. 1 lakh, the balance shall be allowed as deduction for the assessment year 15-16. Double deduction is not possible. If deduction is claimed under section 80EE, no deduction will be allowed in respect of such income under any other provision of the Act for the same or any other assessment year. Query: 1. Whether she is entitled for deduction under section 80EE. 2.. If yes, whether she has to revise return for the AY 14-15 after showing Rs. 64000/- deduction under Section 80EE and get benefit of the the same giving all supporting documents? 3. If yes, whether she is entitled to claim benefit of interest of Rs. 8619/- under section 8EE (208619/- (-) 200000/- (claimed deduction under section 24B) = 8619/- ) in the AY 15-16. 4. Whether entire amount of interest paid before starting (i.e. Rs. 64000/-) MEI which was not claimed as deduction under section 80EE in the AY 14-15, can be claimed in the AY 15-16? If yes, describe in detail. 5. Whether, she will face any problem in revision of return for AY 14-15? 6. Whether income tax return for AY 14-15 can be revised after receipt of Assessment order (intimation under section 143(1)? Please give your valuable opinion in the matter. Thanks Mahesh Sharma
07 July 2015
Return can be revised even after receiving intimation u/s 143(1). There should be no problem in revising the return. Your conclusions about deductions u/s 80EE for P.Y. 2013-14 (Rs.64,000) & P.Y. 2014-15 (Rs.8,619) are absolutely correct.
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