Query on home loan

Tax queries 195 views 5 replies

neeraj

Service & Admin

108 Points Joined August 2008

Mr X purchased a house of 38 lakhs on 15-3-17 by paying 1 lakh as booking amount. Ownership will be tranferred to Mr X on payment of full amount.

Mr X paid 7 lakh for first installment on 15-4-17

He took home loan of 30 Lakhs from bank in july 2017. Bank paid installment of around 12 lakhs during fy 17-18.

Mr X has not paid any amount to bank in fy 17-18 as they have agreed for loan repayment after 18 months.

Is Mr X eligible for any deduction in fy 17-18 under the head House Property and 80CCC.

Replies (5)

No. Deduction is admissible only when house in question is assessable to tax under the head house property. In your case, you become owner on payment of full amount of purchase consideration and therefore, house is not assessable in your hand.

sanjith kotni

Articled assistant

663 Points Joined November 2015

interest paid is allowed under sec 80EE upto maximum 50000 if it is the only house you are owning on the date of sanction of loan and it is used for residential purpose.Excess interest allowed under sec 24(b) upto 2 lakhs is allowed if it is self occupied otherwise there is no limit for interest if it is given for rental . Coming to principal payment deduction up to 150000 will be allowed with respect to payment made against loan under sec 80C.

sanjith kotni

Articled assistant

663 Points Joined November 2015

As per income tax act in order to tax as income whether on actual basis or notional basis assessee must be the owner of house.example of you are owning 2 houses one is self occupied and other is left free and unoccupied then as per income tax act income tax is liable with respect to unoccupied house on notional basis even though no income is accruing to assessee from the said house