Sakitram (NA) (189 Points)
04 March 2015In an housing loan account, Monthly interest generated in the last date of a financial year (ie March 31st, 2014). And that has been paid in April with princiapl (ie next year).
My question is that this repayment to be counted in FY 2013-14 or 2014-15?
Please calrify my doubt.
Thanks
Vishal Goel
(Chartered Accountant)
(1693 Points)
Replied 05 March 2015
Hello,
The amount paid as Repayment of Principal Amount of Home Loan by an Individual/HUF is allowed as tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs. 1,50,000.
This tax deduction under Section 80C is available on payment basis irrespective of the year for which the payment has been made.
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 05 March 2015
Hi Sakitram
Both interest and principal will be allowed u/s 24b and 80C respectively on payment basis. so accordingly you have to cosider this in FY 2014-45.
Sakitram
(NA)
(189 Points)
Replied 05 March 2015
My understanding is just this.
Bank generated interest on 31-03-2014 = A
Payment of EMI (ie above interest + principal) on 01-04-2014 = B
Both A and B to be counted in FY 2014 - 2015 (just as per payment basis)
Hope I am correct with this.
Thanks
Gaurav Vora
(.)
(187 Points)
Replied 05 March 2015
Hi,
Both principal & interest can be claimed only on Payment basis, i.e. when the same is actually paid & not when the same is accrued.
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 05 March 2015
| Originally posted by : Sakitram | ||
 |
My understanding is just this. Bank generated interest on 31-03-2014 = A Payment of EMI (ie above interest + principal) on 01-04-2014 = B Both A and B to be counted in FY 2014 - 2015 (just as per payment basis) Hope I am correct with this. Thanks |
 |
yes, But for taking the dedcution, consider B only by bifurcation of interest and principal amount simply minus the A from B so rest amount of B will indicate to principal. so take the dedcution accordingly u/s 24b and 80C.
Vishal Goel
(Chartered Accountant)
(1693 Points)
Replied 05 March 2015
Hello
Not agree with arif & gaurav for interest claim
Vishal Goel
(Chartered Accountant)
(1693 Points)
Replied 05 March 2015
Tax deduction of Interest on Home Loan under Section 24 is deductible on payable basis, i.e. on accrual basis. Hence, deduction under Section 24 should be claimed on yearly basis even if no payment has been made during the year as compared to Section 80C which allows for deduction only on payment basis.
Sakitram
(NA)
(189 Points)
Replied 05 March 2015
| Originally posted by : Sakitram | ||
|
My understanding is just this. Bank generated interest on 31-03-2014 = A Payment of EMI (ie above interest + principal) on 01-04-2014 = B Both A and B to be counted in FY 2014 - 2015 (just as per payment basis) Hope I am correct with this. Thanks |
|
Then in this case, the Principal and Interest go like this.
A (interest) --> FY 2013-2014
B (only Principal) --> FY 2014-2015
Thanks
Sakitram
(NA)
(189 Points)
Replied 05 March 2015
Then in this case, I think the Principal and Interest go like this.
A (interest) --> FY 2013-2014
B (only Principal) --> FY 2014-2015
Thanks
Arif Ali
(Apt Co Advisory)
(1230 Points)
Replied 05 March 2015
yes Sakitram,
deduction of interest on home loan u/s 24b is allowed on payable, not on payment basis. so correct me.
further you can claim deduction of interest u/s 80EE also, if
Applicability- Benefit of this section can avail by Individual assessee. Deduction under this section is not available for any other assessee (like HUF, firm etc.). Individual can claim benefit under this section only when all the following conditions are satisfied, these are-
Quantum of Deduction- Assessee can take deduction u/s 80EE on interest payable on home loan upto 1 Lakh in A.Y.2014-15. It can claim deduction in two assessments year. Means if whole amount of interest payable upto 1 lakh is not claim as deduction in A.Y.2014-15 then remaining balance amount upto 1 lakh can claim in A.Y.2015-16.Total deduction under this section shall not be more than 1 lakh.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
CAclubindia
