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Repayment of housing loan

CA. Bhabani , FCA, DISA, DIRM (Chartered Accountant) (205 Points)

14 July 2007

Hi,

If a person having only salary income has repaid housing loan what is deductible u/s 80C? Is it principal amount alone? If this may be the case and the person claims deduction u/s24 in respect of interest paid then there will be a loss from house property.which ITR form is applicable in this case? Is it ITR2? Pl.clarify.

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11 Replies

Prafull (19 Points)
Replied 14 July 2007

If person has paid only principal amount of housing loan then ITR form 1 will be applicable. but on other hand if he has paid principal amount of housing loan as well as interest on housing loan then ITR form 2 will be applicable.

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Atul Maharao (100 Points)
Replied 14 July 2007

Hi! The deduction u/s 80C is only towards repayment of principal amount of the loan.

Manish (Chartered Accountant) (42 Points)
Replied 16 July 2007

ITR - 2 is applicable. Because in every case when housing loan principal is repaid, some amount of interest would also be there. Interest loss can be claimed under House Property, therefore, form ITR_2 is to be filed.

Rajagopal (19 Points)
Replied 16 July 2007

Yes, the repayment of principal amount is deductible subject to maximum of Rs.100000(along with other eligible items) u/s80C. Use Form 2.

brajesha (16 Points)
Replied 17 July 2007

Yes ITR - 2 Brajesh Agarwal FCA

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(Guest)

first thing . when a person pay interest on houseing loan the amount of interest is claimed as a loss u/s 24-b of income tax act.amount of interest is shown in negative under head house property negative amount is ajusted against the salary balance salary is gross taxable income. now we claim deduction u/s 80-c for payment of principal amount . total value of 80-c is deducted from gross taxable salary. net taxable salary is QUALIFY FOR calcluation of tax. itr form 2 is applicable thanks

(Guest)

Dear Sir

I own a house on which I have taken a home loan and already availing tax benefits. I have also purchased an under construction house in 2008-09. I have taken loan from bank under construction link plan. The expected possession is in 2009-10. I have already initiated repayment of the principal and the interest on the loan amount released so far. I would like to know whether

I would be eligible for income tax rebate in respect of the repayments for loan on 2nd house (under construction) in 2008-09?

Rajkumar Nallah (Consultancy - I.T Recruitment) (25 Points)
Replied 01 July 2008

ITR 2 is the appropriate form for filing return.

By virtue of claiming a deduction interest on housing loan U/s 24 one falls in the category of INcome (negative as the case may be) from House Property.

(Guest)

I have taken a home loan in 2005 and started EMI in 2005 itself. I got the possession of property in Jan 2008. Till that time I have availed only benefits of Principle repayment. Since I have got the possession, can I claim the benefit of interest repayment for the last 2 years accumulated? Is it that I need to claim 20% of the interest component for the next 5 years? If yes, where should I add this entry in the ITR-2 form ( in my form-16, current years interest repayments are reflected only)

Thanks in advance!

Gurunath (Account & Taxtion Office) (21 Points)
Replied 31 March 2010

Hi,

Where is interest on housing loan applicable in form 16?

Please given me good advice for this question.

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SHUVRO ( (WANT TO LEARN) ) (175 Points)
Replied 31 March 2010

HELLO GURUNATH

U HAVE TO DECLARE THE REPAYMENT OF INTEREST OF THE HOUSE LOAN TO UR EMPLOYER BEFORE HAND.HE WILL SHOW IT IN THE FORM 16 AS LOSS FROM HOUSE PROPERTY (IF UR NOT HAVING ANY INCOME FROM HP).THIS LOSS WILL BE GIVEN SET OFF FROM THE SALARY INCOME IN UR FORM 16.SO U HAVE TO DECLARE IT TO UR EMPLOYER AND HE WILL DO THE REST IN FORM 16