Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

CLAIMING OF 80C HOUSING LOAN REPAYMENT

Riswana EP (STUDENT) (22 Points)

14 July 2020

i have taken a housing loan and purchased a land using the loan. Then constructed house property on the land. can I claim housing loan repayment under section 80c?

Reply
Follow
Share

3 Replies

CA Sunil Kumar (Chartered Accountant) (4519 Points)
Replied 14 July 2020

If you repay the principal during the pre-construction period, then you are not eligible for any kind of tax deductions

Upgrade to CAclubindia Pro. Subscribe Now!

Reema Saw (8 Points)
Replied 14 July 2020

You can take deduction on interest paid on home loan u/s. 24 of upto Rs. 200,000/-

If this limit has been exhausted, you can take deduction u/s. 80EEA if you satisfy the following conditions:

1. You are a first time home owner, means on the date of loan sanction, you shall not own More than one house property.
2. The Stamp Duty Value of your house is 45 Lakhs or less
3. The loan shall be taken in FY 2019-20.

If you satisfy the above conditions then you can claim deduction on the interest paid on home loan for upto Rs.150,000/-

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 23 July 2020

Under section 80C of the Income Tax Act, you get a deduction for the principal (of the loan) repaid up to Rs 1.5 lakh a year and the interest paid is deductible up to Rs 2 lakh per annum under section 24 under head income from house property.