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Income tax calculation

ranjitkarmakar (service) (305 Points)

19 December 2010

Sir please help me, my client purchase a flat in his wife name and partialy loan taken from bank, till to date they are not possession of the said flat, whether his wife is eligible for home loan benefit is her ITR, she was a school teacher and regular file her return, and also please guide me my client can take home loan benefit in his personal ITR return

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10 Replies

Devendra (Chartered Accountant) (4775 Points)
Replied 19 December 2010

Dear Ranjit,

I think so you can claim the principal amount as deduction from your Tax liability u/s 80C, if the construction of the flats are ready, even if the possession is not given to you by your builder.

Regards,

Devendra Kulkarni

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Sandeep Pandey (CA FINAL) (1306 Points)
Replied 19 December 2010

YOU CAN GET DEDUCTION AS IT IS FLAT ...THE ELIGIBLE DEDUCTION WILL BE THE PRINCIPLE AMOUNT PAID IN FINANCIAL yAER IN FOR WHICH SHE IS FILING RETURN.

SHE CAN GET SET OFF WITH SALARY INCOME FOR INTEREST WHICH U R GOING TO PAY FOR THE YEAR

ranjitkarmakar (service) (305 Points)
Replied 19 December 2010

Originally posted by : ranjitkarmakar

Further my question is that whether my client (the husband) can also take housing loan benefit in his ITR

Rahul Gupta (Chartered Accountant) (644 Points)
Replied 20 December 2010

You can claim the Principal amount of the loan as a deduction u/s 80C

Moreover the interest paid for the loan can be claimed as deduction under the head House Property and the loss will be set off to your Salary Income.

Regards,

Rahul

ASHWANI KUMAR (Private Job) (44 Points)
Replied 20 December 2010

I AM ICAI STUDENT AND HAS GIVEN BOTH GROUP OF CA INTER IN NOV.2010 EXAM. I WOULD LIKE TO ADMIT IN COURSE OF ICWAI FOR DEC.2011 EXAM.

MY QUESTION IS : IS IT POSSILE FOR JOINING ICWAI INTERNEDIATE COURSE WITHOUT INTIMATION TO ICAI.

IS IT COMPULSORY FOR JOINING ANOTHER COURSE ONE HAS TO GET ACCEPTANCE FROM ICAI.

KINDLY SEND ME THE RELEVANT INFORMATION TO EMAIL ID:

ashshama86 @ hotmail.com,gmail.com,ymail.com

REGARDS

ASHWANI

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(Guest)

Agreed with Devendra

C.Balaji (Learner) (1867 Points)
Replied 20 December 2010

Dear ranjitkarmakar....

Post Construction Principal Repayment of Housing Loan is allowed as Deduction U/s 80C upto a Maximum of Rs.100000/-.............

naveena (student) (26 Points)
Replied 20 December 2010

principal amount can be claimed as deduction under section 80C

interest amount can be claimed as loss from house property and be setoff from salary income.

Raghunath Prasad (WORKING) (385 Points)
Replied 20 December 2010

principal amount can be claimed as deduction under section 80C

interest amount can be claimed as loss from house property and be setoff from salary income.

but i think if u have no possison than u dont claime the intrest amount

Adityakumarhv (CA Final) (45 Points)
Replied 20 December 2010

The amount you pay as stamp duty when you buy a house, and the amount you pay for the registration of the documents of the house can be claimed as deduction under section 80C in the year of purchase of the house.

The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components – Principal and Interest.The principal component of the EMI qualifies for deduction under Sec 80C. Even the interest component can save you significant income tax – but that would be under Section 24 of the Income Tax Act. Please read “Income Tax (IT) Benefits of a Home Loan / Housing Loan / Mortgage”, which presents a full analysis of how you can save income tax through a home loan.

YOU CAN TAKE DEDUCTION ON PRINCIPAL AMOUNT OF THE LOAN FROM/IF ANY PAID DURING THE CURRENT YEAR.. NOT DIRECT PAYMENT THOUGH BANK/CASH/IF ANY MODE