Housing Loan Deduction clarification
This query is : Resolved
14 January 2017
Respected Experts,
can you clarify when housing loan principal 80 c and u/s 24 interest benefit claimed I.e. which FY it start.
at the time of agreement and registered date on ebtr and registered with stamps duty department or any possession letter specify any or occupancy certificate get.Please clarify exact date on which previous year I claim housing loan as he already paid some emi.
Please kindly let me know asap.
15 January 2017
Dear Abhijit,
For claiming deduction u/s 24(b) of interest paid on housing loan, you can claim it after completion certificate.
the deduction of housing loan principal repayment can be claimed from the date of repayment. there no such limit is prescribed.
18 January 2017
respected sir,
what if he did not claim to principal. can he claims after completion along with interest
28 July 2024
Certainly! Here’s a detailed explanation of when you can start claiming deductions for housing loan principal repayment under Section 80C and interest under Section 24(b), along with some additional clarifications:
### **Claiming Housing Loan Deductions**
#### **1. Deduction under Section 24(b) - Interest on Housing Loan**
**When to Start Claiming:**
- **Start Date for Claims**: You can start claiming a deduction for interest on a housing loan under Section 24(b) from the financial year in which the construction of the property is completed or the property is occupied, whichever is earlier.
- **Possession/Completion**: The key event is when the property is either occupied or construction is completed. You need not wait for the property to be registered or for an occupancy certificate, but the deductions can only be claimed from the year when the property is deemed to be self-occupied or let out.
- **Proportional Deduction**: For a property that is not self-occupied (e.g., rented out), you can claim the entire interest paid, but for self-occupied property, the deduction is capped at ₹2,00,000 per year.
**Example**:
- **Construction Completion**: If construction is completed and the property is occupied in FY 2022-2023, you can claim the interest deduction for that financial year.
#### **2. Deduction under Section 80C - Principal Repayment**
**When to Start Claiming:**
- **Start Date for Claims**: The deduction for principal repayment under Section 80C can be claimed from the financial year in which the EMI payment is made. The principal repayment claim starts from the year the EMI payments are made, irrespective of the construction status of the property.
- **Possession/Completion**: Unlike interest deduction, there’s no need for the property to be occupied or registered. As long as you are making principal repayments, you can claim the deduction.
**Example**:
- **EMI Payments**: If you started paying EMIs in FY 2021-2022, you can claim the deduction for principal repayment for that financial year.
### **Claims and Corrections**
- **Missed Claims**: If you have missed claiming the principal repayment or interest in the initial years, you can still claim them in the subsequent years. You need to ensure that the relevant documentation, such as loan statements and repayment receipts, is available.
- **Revised Returns**: If you have missed claiming these deductions in the original return for a particular financial year, you can file a revised return for that year to include the missed deductions.
### **Summary**
1. **Section 24(b) - Interest**:
- Claim from the year in which construction is completed or the property is occupied (whichever is earlier).
- Maximum deduction of ₹2,00,000 per year for self-occupied property.
2. **Section 80C - Principal Repayment**:
- Claim from the year in which EMI payments are made.
- Deduction of up to ₹1,50,000 per year on principal repayment.
3. **Missed Claims**:
- You can claim deductions in the year they are applicable or file a revised return for previous years where deductions were missed.
Make sure to maintain proper records of all loan payments, including interest and principal repayment statements, to support your claims.
### **Claiming Housing Loan Deductions**
#### **1. Deduction under Section 24(b) - Interest on Housing Loan**
**When to Start Claiming:**
- **Start Date for Claims**: You can start claiming a deduction for interest on a housing loan under Section 24(b) from the financial year in which the construction of the property is completed or the property is occupied, whichever is earlier.
- **Possession/Completion**: The key event is when the property is either occupied or construction is completed. You need not wait for the property to be registered or for an occupancy certificate, but the deductions can only be claimed from the year when the property is deemed to be self-occupied or let out.
- **Proportional Deduction**: For a property that is not self-occupied (e.g., rented out), you can claim the entire interest paid, but for self-occupied property, the deduction is capped at ₹2,00,000 per year.
**Example**:
- **Construction Completion**: If construction is completed and the property is occupied in FY 2022-2023, you can claim the interest deduction for that financial year.
#### **2. Deduction under Section 80C - Principal Repayment**
**When to Start Claiming:**
- **Start Date for Claims**: The deduction for principal repayment under Section 80C can be claimed from the financial year in which the EMI payment is made. The principal repayment claim starts from the year the EMI payments are made, irrespective of the construction status of the property.
- **Possession/Completion**: Unlike interest deduction, there’s no need for the property to be occupied or registered. As long as you are making principal repayments, you can claim the deduction.
**Example**:
- **EMI Payments**: If you started paying EMIs in FY 2021-2022, you can claim the deduction for principal repayment for that financial year.
### **Claims and Corrections**
- **Missed Claims**: If you have missed claiming the principal repayment or interest in the initial years, you can still claim them in the subsequent years. You need to ensure that the relevant documentation, such as loan statements and repayment receipts, is available.
- **Revised Returns**: If you have missed claiming these deductions in the original return for a particular financial year, you can file a revised return for that year to include the missed deductions.
### **Summary**
1. **Section 24(b) - Interest**:
- Claim from the year in which construction is completed or the property is occupied (whichever is earlier).
- Maximum deduction of ₹2,00,000 per year for self-occupied property.
2. **Section 80C - Principal Repayment**:
- Claim from the year in which EMI payments are made.
- Deduction of up to ₹1,50,000 per year on principal repayment.
3. **Missed Claims**:
- You can claim deductions in the year they are applicable or file a revised return for previous years where deductions were missed.
Make sure to maintain proper records of all loan payments, including interest and principal repayment statements, to support your claims.
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