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Deduction u/s 80C

lokesh agrawal (142 Points)

17 June 2018

Repayment of interest and principle of housing loan are eligible of deduction u/s 80c. when???

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14 Replies

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 17 June 2018

principal is eligible for Deduction u/s 80C

For interest you can claim loss under house property

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lokesh agrawal (142 Points)
Replied 17 June 2018

if we take loan for 15 years and principal and interest payment are made by me for 15 years so we can claim deduction for all the 15 years or less or how much amount??

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 17 June 2018

you can claim Deduction for the current year and not of the previous year.

kindly refer https://cleartax.in/s/house-property

1 Like

CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 17 June 2018

principal is eligible for Deduction u/s 80C

For interest you can claim loss under house property upto 200000

lokesh agrawal (142 Points)
Replied 17 June 2018

I m not clear from above reply. please evaluate the same for further clearance.

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CA S Praveen Kumar Reddy (Chartered Accountant) (2195 Points)
Replied 17 June 2018

Interest u can claim only 200000 in a year

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Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 17 June 2018

Are you paying the 15 years principal & Interest in a single year or it is spread over 15 years?

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lokesh agrawal (142 Points)
Replied 17 June 2018

spread over 15 years

Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 17 June 2018

Than claim Deduction each year,
kindly ask the bank to provide bifurcation between interest & principal repayment during each FY at each year end

lokesh agrawal (142 Points)
Replied 17 June 2018

Ok Thanks Ashiwini ji

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Ashiwini Ballodia (Managing Partner at TAXounting) (8727 Points)
Replied 17 June 2018

Most Welcome Lokesh Ji

rama krishnan (12234 Points)
Replied 17 June 2018

claim principal repayment under 80c and interest amount (up to 200000 for self occupied property) and unlimited for let out property under 24(b)

Jatin (Accountant) (3479 Points)
Replied 17 June 2018

You can claim deduction of principal payment of housing loan under section 80C up to Rs. 1,50,000.00

You can't claim deduction of interest payment of housing loan under section 80C, However you can claim deduction of interest payment of housing loan under section 24(b) up to Rs. 2,00,000.00 if self occupied property, if rented property no limit

Akanksha Kusum Ashok (LL.B Student) (11 Points)
Replied 28 June 2018

Repayment of Principal Amount of a loan is deductible under Section 80C only for residential purpose and not for commercial purpose. The deduction available under Section 80C, 80CCC and Sub Section (1) of section 80CCD shall not, in any case, exceed one lakh and fifty thousand rupees.

Whereas,

To claim the Rs. 2 lakhs rebate on Interest on Home loan;

a. The home loan must be for purchase and construction of a new property b. The loan must be taken on or after 1 April 1999 c. The purchase or construction must be completed within 3 years from the end of the financial year in which the loan was taken.