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Hsg loan interest

Pooja (Accountant) (103 Points)

20 February 2014

Help me please

I aquired house in March 10 and sold it in March 13

Can I take benefit of Deductions of hsg loan interest and principle in march 13???

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6 Replies

Ankit (CA, CS) (3064 Points)
Replied 20 February 2014

Yes Pooja...you can for that year

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CA SUKSHAM ARORA (CA) (569 Points)
Replied 20 February 2014

ACCORDING TO ME

YOU CAN TAKE BEMIFIT OF LOAN INTEREST PAID & PRINCIPAL PAID IN CASE YOU HOLD THE PROPERTY IN THE RELEVANT F.Y. U/S 24(b) & 80C RESPECTIVELY AS U MUST BE DOING IN THE EARLIER YEARS OF PAYMENT

Mihir (Wealth Manager) (5293 Points)
Replied 20 February 2014

If the assessee has transferred the property within 5 years of acquisition/construction, then 1) no deduction u/s 80C (principal) shall be allowed of repayments made during the year, 2) the aggregate of deductions u/s 80C (principal) availed earlier shall be deemed to be the income of the assesee in the year of transfer.

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Mohammad saifee (Entrepreneur ) (72 Points)
Replied 20 February 2014

Miss Pooja, you cannot take benefit ..because you were not a owner of such house at the ems of the relevant previous year.

Stranger (.) (5531 Points)
Replied 21 February 2014

Originally posted by : Mihir
	If the assessee has transferred the property within 5 years of acquisition/construction, then 1) no deduction u/s 80C (principal) shall be allowed of repayments made during the year, 2) the aggregate of deductions u/s 80C (principal) availed earlier shall be deemed to be the income of the assesee in the year of transfer.

Besides, housing loan interest deduction under section 24(b) is also not available for the year of sale as ownership is necessary but it won’t be reversed like 80C. Moreover, you will be able to claim the interest as cost of improvement for capital gain purpose [Refer ACIT Vs. C. Ramabrahmam (IT APPEAL NO. 943 (MDS.) OF 2012)]