HK-Finance (xx) (25 Points)
08 October 2010I purchased a site from Urban development authority in an auction, I want to apply for a Housing Loan for the purchase of site, I found a Housing loan product from SBI, Earnest Money Deposit (EMD) Scheme,
If i take this loan for site purchase can I avail the INCOME TAX Benifit ?
If yes under which section and details?
Income tax benifit for Principle or intrest repayment and maximum limit ?
Thankyou in advance
Karan Thacker
(CA)
(117 Points)
Replied 08 October 2010
being a Eng. you would have atleast checked the quality. Speaking on the topic you can avail deduction of both interest as well as principle amount of Housing Loan taken by you....
Section relating to the principle amount - 80C :
Further you can avil maximum deduction of only Rs. 1 lakh
Section relating to the interest amount - 24(ii) :
Further under this section you can avail maximum deduction of only Rs 1.5Lakh
After the implication of DTC you cannot avail the deduction of principle amount
CAclubindia
