Interest on housing loan

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Querist : Anonymous

Querist : Anonymous (Querist)

28 March 2012 I HAVE TAKEN HOUSING LOAN FROM MY EMPLOYER. THE INTEREST AND PRINCIPLE AMT IS EXEMPTED FOR INCOME TAX?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 March 2012 You will get a deduction of the interest and the principal repayment.

Interest payment shall be allowed as deduction under the head Income from Other Sources and principal repayment shall be allowed as deduction under Section 80C.

Mihir Doshi

Mihir Doshi (Expert)
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28 March 2012 My opinion differes here,

Go through Section 80C, it doest not speak about loan from Employer. So Principal can not be claimed if loan is taken from employer.

While interest can be claimed u/s 24 for borrowed amount.

Thanks
Mihir doshi

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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28 March 2012 Dear Mihir please read Section 80C(2)(xviii)(c)(8) which reads as under:

repayment of the amount borrowed by the assessee from:

the assessee’s employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society

Accordingly deduction is available if loan is taken from an employer falling in the above category.

Mihir Doshi

Mihir Doshi (Expert)
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29 March 2012 Agree with you Siddhartha,

So, it means if the employer is private company or other than public company, Housing loan principal payment wont be claimed u/s 80C. Am I right?

Thanks
Mihir Doshi

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 March 2012 Yes in that case, the repayment of principal amount cannot be claimed u/s 80C.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 March 2012 Yes in that case, the repayment of principal amount cannot be claimed u/s 80C.

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