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80 CCE

CA S Sundararajan (CAO) (536 Points)

23 December 2007

can assessee get deduction u/s 80 C for housing loan availed for improvement

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9 Replies

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 23 December 2007

According to the provision of income tax act,1961 principal repayment of the loan/capital borrowed is eligible for a deduction of upto Rs 100,000 under Section 80C from assessment year 2007-08. According to law of interpretation assessee cannot get deduction u/s 80 C for housing loan availed for improvement.

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CA Chaitanya (PRACTISING CA) (4283 Points)
Replied 23 December 2007

He cannot get benefit u/s 80c but he can claim deduction u/s 24 for the interest payment.

Amit Sharma (article) (2677 Points)
Replied 24 December 2007

Cannot claim u/s80 c

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 24 December 2007

Thanks Chaitanya and amit for rectifying me If you dont mind can you interperate this section for me Sec 80C(XVIII) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head “Income from house property” (or which would, if it had not been used for the assessee’s own residence, have been chargeable to tax under that head), where such payments are made towards or by way of— (a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or (b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or (c) repayment of the amount borrowed by the assessee from— (1) the Central Government or any State Government, or (2) any bank, including a co-operative bank, or (3) the Life Insurance Corporation, or (4) the National Housing Bank, or (5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or (6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or (7) the assessee’s employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or (8) 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; or (d) stamp duty, registration fee and other expenses for the purpose of transfer of such house property to the assessee, but shall not include any payment towards or by way of— (A) the admission fee, cost of share and initial deposit which a shareholder of a company or a member of a co-operative society has to pay for becoming such shareholder or member; or (B) the cost of any addition or alteration to, or renovation or repair of, the house property which is carried out after the issue of the completion certificate in respect of the house property by the authority competent to issue such certificate or after the house property or any part thereof has either been occupied by the assessee or any other person on his behalf or been let out; or (C) any expenditure in respect of which deduction is allowable under the provisions of section 24;

(Guest)

Under SEc.80C, deduction of amt. paid for repayment of loan which is taken for construction or purchase of house can only be claimed. hence for renovation or improvment of house, not deduction for any payment of loan borrowed for such purpose can be made. the exemption can be claimed under SEc.24(b) of Rs.30000.

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CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)
Replied 07 January 2008

Dada woh provision amend ho chuka hai

preventive chennai (officer) (22 Points)
Replied 06 November 2009

I am making repayments to the homeloan availed for purchase of flat, I occupied the flat during the previous financial year

from this financial year I have given it on rent

I want to know

1. can i get deduction for the interest for the home loan taken for purchase of flat, now given on rent, is it possible to claim deduction under sec 24

2. for the above flat can I claim deduction under sec 80 cce for repayment of principal of the home loan taken, (upto 1lakh)