Houseloan tax exemption under 80c and 24(b)
This query is : Resolved
12 October 2012
I have taken a home loan and repaying it since April 2012. Please see below senario and guide me.
In April 2012 the house was under contruction.
I got Possetion on 1st Sep 2012.
I was paying Pre-EMI since April 2012 till Aug 2012.
I am paying EMI from Sep 2012 onwards.
As per Provisional Certificate from bank the break up is as follows.
PRINCIPAL COMPONENT Rs 12,557.83
INTEREST COMPONENT Rs 87,282.17
PRE-EMI INTEREST Rs 79,068.00
My Query is "Can I get 24(b) benifit on entire amount of Pre-EMI Interest and Interest Component(i.e. Rs 87,282.17 + Rs 79,068.00)in this FY?"
Please help me on this.(Request you to please explane the answer.)
In April 2012 the house was under contruction.
I got Possetion on 1st Sep 2012.
I was paying Pre-EMI since April 2012 till Aug 2012.
I am paying EMI from Sep 2012 onwards.
As per Provisional Certificate from bank the break up is as follows.
PRINCIPAL COMPONENT Rs 12,557.83
INTEREST COMPONENT Rs 87,282.17
PRE-EMI INTEREST Rs 79,068.00
My Query is "Can I get 24(b) benifit on entire amount of Pre-EMI Interest and Interest Component(i.e. Rs 87,282.17 + Rs 79,068.00)in this FY?"
Please help me on this.(Request you to please explane the answer.)
12 October 2012
1/5 the of pre EMI interest + Rs.87282.17 can be claimed as deduction u/s 24(b) in the F.Y 2012-13.
12 October 2012
Thanks B.Chackrapani. I am not an expert for this but I am still confused regarding the Explanation that is provided in Section 24 of the act.
"Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:]"
What is mean here by "the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed"?
In my case Capital is Borrowed in this FY and Property has been aquired in the same FY.
"Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:]"
What is mean here by "the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed"?
In my case Capital is Borrowed in this FY and Property has been aquired in the same FY.
13 October 2012
You can claim entire amount as you paid interest from april. Year in Which construction is completed is taken as post construction irrespective of the date.
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13 October 2012
I stand corrected. Error is regretted.
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13 October 2012
I agree with Mr. Vishnu Gavkare, but would like to comment on the calculation part.
Your total interest adds upto more than Rs. 1.66 Lakhs, whereas if this property is for self occupation, then you would get exemption upto Rs. 1.5 Lakhs only.
So coming to your query, you cant claim the entire amount of Rs. 1.66 Lakhs but only Rs. 1.5 Lakhs out of the same.
Your total interest adds upto more than Rs. 1.66 Lakhs, whereas if this property is for self occupation, then you would get exemption upto Rs. 1.5 Lakhs only.
So coming to your query, you cant claim the entire amount of Rs. 1.66 Lakhs but only Rs. 1.5 Lakhs out of the same.
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15 October 2012
Dear All,
Thanks for your valuable information!. Sorry to bother you again.
One small quetion related Interest Limit(Max Rs.1.5 Lakhs). If the loan and house is in Joint name, is the limit stands Rs. 1.5 Lakhs per person or max total Rs. 1.5 Lakhs for both?
Thank you very very much in advance!
Thanks for your valuable information!. Sorry to bother you again.
One small quetion related Interest Limit(Max Rs.1.5 Lakhs). If the loan and house is in Joint name, is the limit stands Rs. 1.5 Lakhs per person or max total Rs. 1.5 Lakhs for both?
Thank you very very much in advance!
15 October 2012
If the house and loan is in joint names, then limit of Rs. 1.5 Lakhs would be for per person.
However, the division of interest would also be in proportion of house ownership and loan liability.
For example,in your case, total interest is Rs. 1.66 Lakhs. So if both are equal owners, then each of them can claim Rs. 83K u/s 24b.
However, the division of interest would also be in proportion of house ownership and loan liability.
For example,in your case, total interest is Rs. 1.66 Lakhs. So if both are equal owners, then each of them can claim Rs. 83K u/s 24b.
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31 December 2012
Dear All,
One more question. As I was living in a rented house till 30th Aug 2012, can I get the HRA exemption(section 10(13A) rule 2A) for the period in which I was living in rented house?
Means 24b benefit for entire FY and 10(13A) rule 2A benefit for the period in which I was living in a rented house?
Thanks in advance.
One more question. As I was living in a rented house till 30th Aug 2012, can I get the HRA exemption(section 10(13A) rule 2A) for the period in which I was living in rented house?
Means 24b benefit for entire FY and 10(13A) rule 2A benefit for the period in which I was living in a rented house?
Thanks in advance.
31 December 2012
Yes, you can claim HRA Exemption till 30th Aug 2012.
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