Loan for purchase of land

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2011 One of our staff took loan from nationalised bank for purchase of land .Whether interest and principal repyment can deduct from his IT computation.

CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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05 December 2011 No deductions will be done while doing income tax calculation. However if u have taken house or construct a house, you can avail interest deduction u/s 24 and principal repayment u/s 80c.

Thanks,
CA M Sreenivasa Rao.

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2011 Land which he purchased is urban land for construction of house

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CA Sreenivasa Rao Munaga

CA Sreenivasa Rao Munaga (Expert)
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06 December 2011 Loan taken for construction of House is eligible for U/s 80C and Interest also will be allowed as deduction U/s 24.

Please let me know if u have any doubts.

Thanks,
CA M Sreenivasa Rao.