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housing loan interest

27 July 2010

friends.

housing loan repayment by EMI rs. 20000.per month.

Can we deduct interest part of EMI as deduction under house property u/s 24, and principal amount of EMI as deduction u/s 80C ?

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17 Replies

N KRISHNA CHAITANYA (CA Student) (101 Points)
Replied 27 July 2010

If there is possibility then we can claim interest part U/s 24 and principal part u/s 80C

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sachin -ca final nov 2011 (assistant) (49 Points)
Replied 27 July 2010

yes we can claim

CA Krishna Chaitanya M (Chartered Accountant) (463 Points)
Replied 28 July 2010

***if it is self occupied property, then amount of permissible deducton p.a 30000

however if following conditions are satisfied, the amount of permissible deduction is 150000

1.if loan is taken on or after 1/4/1999

2.loan is taken for purpose of purchase , aquisition , construction of house property

***if it is let out property , then there is no limit to deductable amount

NARENDER PAWAR (CA final Student) (337 Points)
Replied 28 July 2010

u can claim intt. under the head income from house property u/s 24b & principal part u/s 80c

Manivannan.C (article clerk - CA pcc 1st grp cleared) (80 Points)
Replied 28 July 2010

ya u can claim both 24 and 80C

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Pavan Kumar (Manager - Finance) (126 Points)
Replied 28 July 2010

YOU CAN CLAIM BOTH INTEREST AND PRINCIPAL PAYMENT

Sachin (Technical Lead) (21 Points)
Replied 28 July 2010

Read this, hope it helps.

https://www.incometaxindia.gov.in/publications/5_house_property/5_house_property.asp

Moreover, if you are living in this property, then you can either avail HRA benefit or Home loan benefit as part of Sec 80c. As part of Sec 24, you may avail upto maximum of 1.5 Lac deduction.

In case you rent-out this property to someone else, then the upper limit of 1.5 Lacs vanishes !! But then you need to add rental income to your income for that year and deduct the interest paid on home loan + 30% of the annual rent you earned as part of fixed expenditure.

Cheers,

Sachin

CMA. Subhash Kumar Jha (General Manager - Finance) (8396 Points)
Replied 28 July 2010

Yes, specifically the rule is exactly that. For your internal support take the loan repayment certificate from the bank. This will carry the bifurcation of principal repayment as well as interest payment during the financial year. Claim the principal under 80C & interest upto 150000/- under section 24.

Dharmendra Jha (Asst. Manager Finance) (100 Points)
Replied 28 July 2010

yes its deductable under section 24 & 80C just follow on

Nomula Sreenivasarao (DGM -Accounts) (163 Points)
Replied 28 July 2010

YES YOU CAN...

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ANUJ (article) (26 Points)
Replied 28 July 2010

INT. ON HOUSING LOAN IS DEDUCTIBLE U/S 24 (a) if it is self occupied to the extenet of max. 150000. & U/S 24(b) for let out prop., without any limit .

A PROVISIONAL CERTIFICATE FOR INTREST BIFURCATION CAN BE TAKEN FROM THE BANK TO CLAIM DEDUTION.

EMI (exclusive of int ) ELIGIBLE FOR DEDUCTION U/S 80C .