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deduction under section 80C

Ashish Modgil (43 Points)

05 August 2018

Is deduction under section 80C ALLOWED FOR PRINCIPAL REPAYMENT OF HOUSING LOAN DURING UNDER CONSTRUCTION PHASE

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Deepak Gupta (CA Student) (15922 Points)
Replied 05 August 2018

As per the provisions of section 80C, principal repayment of borrowed amount for the purposes of purchase or construction of a residential house property from the notified authority is eligible for deduction, if such house property is chargeable to tax under the head "Income from house property" (including assessee's own occupation of the house property).

Since under construction house property does not qualify to be chargeable to tax under the head "Income from house property", no deduction shall be allowed u/s 80C.

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Ashish Modgil (43 Points)
Replied 05 August 2018

in the act there is also written in the brackets" would be chargeable to tax had the property not used for self residence"

NIshtha Sharma (Manager) (33 Points)
Replied 02 January 2019

Section 80C is an Income Tax saving section that has been introduced by the Finance Act, 2005. Broadly speaking, this section provides a deduction from total income in respect of various investments/ expenditures/payments in respect of which tax rebate u/s 88 was earlier available.