Sir
Can you please answer my following queries at the earliest:-
1. Whether residential plot is coming under the word residential house property for the purpose of Sec.80C.
2. Can 2 different assessees purchase a residential house property jointly and claim deduction U/s 80C
for a maximum amount of Rs.1,00,000/- each.
3. If a personal loan (not the Housing Loan) is taken for purchase of residential house property, then whether in that case also.
4. If the initial deposit i.e. the booking amount is also coming u/s 80C.
deduction u/s 80C is available for repayment of personal loan.
Hoping for quick and right answer for my queries from some expert person in taxation matters?
Thanks in advance.
Bye
Sumit Aggarwal
Hi Sumit ,
First of all i will like to thank to you for sending me Excel Technique 1 Software.
Now i am pointing to your question:
1. Answer to Q.No.1.The word House Prperty is defined in the Income Tax Act,1961 as the Buildings and its Appurtenant thereto.So the Residential Plot comes under the definition of House Proerty thus in 80 C too.
2. Answer to Q.No.2. Yes the two different assesse can purchase the Residential Proerty Jointly - The Benefit they will get is Both Can Claim Interest Deduction of Rs 150000 or Rs 30000 as the case may be ie Whether for Consrtruction /Acquisition or Renovation/Repair etc.
Both of them can claim Deduction Under Section 80 C to the Maximum of Rs 100000.
3.Answer to Q.No.3.If personal loan is taken for purchase of house property then Interest portion can be only allowed ubnder section 24(2).In Section 80 C it is specified that the loan should be taken for the purchase of house property as specified in the loan papers & also the loan should be taken from the FI'S,Nationalised Banks,Co-operative listed banks.So as per my view it will not be entertained under section 80 C.
4.Answer to Q.No.4.The initial deposit can be claimed as deduction under section 80 C because it is by the way of repayment only.
Bye hoping that you will benefit from it.
Kaushik ( CA PE II & Tax Return Preparer as per scheme announced by Income Tax Department)
CAclubindia
