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Income tax exemption for home loan

Raghu (AAO) (37 Points)

11 January 2013

Hi All,

I have purchased a house during Dec 2012 availing a loan of Rs 20 lakh. It is 12 years old. I am planning to let it out from Apr 2013 as there are some painting and other works to be carried out.

I have the following quesions.

1. Can I claim exemption U/S 24 for the Interest accrued during FY 2012-13 around Rs (30,000/-) ?

2. Can I claim exemption for the Principal paid during 2012-13 u/s 80 C?

3. Can I claim exemption for the Stamp Duty & Registration fees paid u/s 80 C?

4. What is the maximum exemption u/s 24 for the interest accrued during FY 2013-14 if the house is let out for the whole year?

Thanking You.

Raghu.G

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5 Replies

MudraMantri (Wantapreneur) (491 Points)
Replied 11 January 2013

Dear Raghu,

First of all congratulations that you bought a new house. Here is the reply to your querries:-

1) Yes, definately you can claim exemption under section 24, to be precise U/s 24(b). The mentioned section says that Interest on borrowed capital will be allowed as deduction only if the amount is borrowed for :

a) PURCHASE or Construction

b) repairs and renewals or Re-construction of the property.

So your case squarely falls under it.

Further there is no restriction on the amount of interest that you can claim If the house is let out.

Please note that such restriction applies only to self occupied property.

2and 3) Yes, you can claim exemption U/s 80C for the repayment of loan borrowed Only if income from your house is chargeable under the head " Income from house property", Which means you have to show the said income in your ITR and pay tax on it.

Further, 80C also allows exemption on any expd. towards stamp duty, registration and other expenses incurred.

4) Refer Pt. No1

Regards

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CA D.C. Bansal (Accounts Head) (283 Points)
Replied 11 January 2013

Your queries have been answered as under:

1. Can I claim exemption U/S 24 for the Interest accrued during FY 2012-13 around Rs (30,000/-) ?

YES

2. Can I claim exemption for the Principal paid during 2012-13 u/s 80 C?

YES

3. Can I claim exemption for the Stamp Duty & Registration fees paid u/s 80 C?

YES

4. What is the maximum exemption u/s 24 for the interest accrued during FY 2013-14 if the house is let out for the whole year?

NO CEILING LIMIT

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 11 January 2013

Originally posted by : D.C. Bansal
	Your queries have been answered as under: 1. Can I claim exemption U/S 24 for the Interest accrued during FY 2012-13 around Rs (30,000/-) ? YES 2. Can I claim exemption for the Principal paid during 2012-13 u/s 80 C? YES 3. Can I claim exemption for the Stamp Duty & Registration fees paid u/s 80 C? YES 4. What is the maximum exemption u/s 24 for the interest accrued during FY 2013-14 if the house is let out for the whole year? NO CEILING LIMIT