Benefit u/s 80-C Principal on Hsg Loan
Rajan (Service) (157 Points)
28 June 2008Rajan (Service) (157 Points)
28 June 2008
Ramakrishna
(Financial Executive)
(438 Points)
Replied 28 June 2008
Dear Rahul !
Query I:
There is no restriction prescribed to deny the benefit of deduction in respect of the principal paid on housing loan which was availed for let out property.
Query II:
The section 80C uses the word ' a house property' , Any such singular reference has to be interpreeted in the light of the provisions of Section 13 of the General Clauses Act, 1908. As per this, any singular reference in any statute, has to be taken as referring to any plural objects also, unless there is a specific exception made out.
Query III:
Section 80C(2)(xviii)(d) sub-clause (B) clearly states that the deduction permitted in respect of principal paid on housing loans do not include 'the case of any addition or alteration to, or renovation or repair of, the hosue 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'.
However, interest paid on such loans availed for the purpose of repair, renewal or reconstruction of the house property is allowed to an extent of Rs. 30,000/- under Section 24(b). This is a clear case of concession extended only in respect of the interest paid on housing loans availed for certain purposes. All the eligible situations have been discussed. Therefore, it can not be presumed to cover situations which have not been specified.
Thus, in respect of housing loans availed for the purpose of extension of an existing house or improvement of the same or making any enlargement of the house property by way of additional construction, etc, which are carried out after the original construction, no benefit of deductions are available either for the principal or the interest involved.
Good luck !!!