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Housing loan exemption

Amod Ranjan (Service) (356 Points)

27 March 2012

If someone show a housing loan payment statement and as per statement Principle component is 5080 & interest Component is 35584 & Pre-EMI Interest is 6559, so which component will go to 80c interest or principle?

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3 Replies

CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 27 March 2012

Section 80 allows deduction on the repayment of the principal component of the loan. the interest component is allowable under section 24 upto the limit of Rs. 1,50,000/-

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Amod Ranjan (Service) (356 Points)
Replied 27 March 2012

Thanks Mr. Ankit, if he is submiting rent receipt of Rs. 19000 PM apart from housing loan then 24b is acceptable or not?

CA Ankit Totla (Practicing Chartered Accountant) (469 Points)
Replied 27 March 2012

deduction on the interest component is available irrespective of the facts of whether the house is given on rent or not.

if the house is not given on rent, yet int deduction is allowable. In such a case you file a ROI showing a loss under the head "INcome from House Property"

Also, the limit of Rs. 1.50.000/- is applicable in case of self occupancy. If the house is given on rent then the deduction for interest is available upto the actual amount paid.