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treatment of subsidy recd under pradhan mantri awas vikas yojna

priyankagupta (article) (361 Points)

26 June 2018

My assessee had recd subsidy under pradhan mantri awas vikas yojna. Is Any deduction claimed in return againest such subsidy. If yes, in which head

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 26 June 2018

The subsidy reduces the interest charged over home loan by reduced EMI. When the interest amount itself gets reduced, question of any additional benefit doesn't arise.

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priyankagupta (article) (361 Points)
Replied 27 June 2018

Subsidy recd during the year and intt payment is made as repayment of instalment. Then only intt. Can be claimed under House property head.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177852 Points)
Replied 27 June 2018

Deduction of Interest over housing loan can be claimed as usual, but if subsidy received in your hand, the deduction will reduced to that effect. But as per the scheme the interest is charged at reduced rate, while the subsidy is received directly by bank.