Sec 80C Tax benefit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 May 2010 One of my clients has bought an under construction flat in Mumbai in Sept 09. He has taken a loan from HDFC Ltd and the EMI's have started from Jan 2010.

The housing loan representative said he can avail tax benefits on the EMI only after the possession of the property is complete (June' 2011).

Does this mean that h will not get any tax benefit for almost 18 EMI's (Jan 2010 - June 2011). Is there any way he can get some tax benefit out of this in this financial year?

chetan soni

chetan soni (Expert)
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12 May 2010 Sec. 80C is very silent about this. It only says the principle repayment for loan taken to buy a property or for renovation.

on the basis of plane reading you can avail the tax benefit.

Experts pls. post your comment.

Rahul Gupta

Rahul Gupta (Expert)
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12 May 2010 Yes. My view is also that you can avail the exemption u/s 80C.

Experts views are solicited....

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CA Pradeep Kumar Rajput

CA Pradeep Kumar Rajput (Expert)
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12 May 2010 the installment paid before the possession will be allowed as deduction in 5 years in equal proportion subjection to limit of respective Section......