• Relief u/s 24 and 80EE

I got home loan of Rs. 19 Lakh from PNB in June 2017 for extension of my existing house.The estimated cost is apprx 24 Lakh.I have not taken home loan before.The construction is expected to be completed in this financial year i.e. 2017-18.I want to start to pay EMI from April 2018.Not repaid any interest for current year till now.How can I claim relief u/s 24 and 80EE for this year? Please guide.
R.k.Jha
Asked 4 years ago in Income Tax

If you are paying your Home loan Interest against Self occupied property, in such case you can claim deduction upto Rs.200000 against your other Income (incl Salary).

Thanks,

CA Sourabh Pahuja

Sourabh Pahuja
CA, Delhi
78 Answers
1 Consultation

5.0 on 5.0

You Can only claim what you have paid. If you haven't paid ant amount. Then you wont be able to claim any deductions.

Rohit Vyas
CA, Mumbai
10 Answers

4.0 on 5.0

Hi

As per the data, you have not paid any interest yet. Since no interest has been paid, no deductions can be claimed.

Lakshita Bhandari
CA, Mumbai
5660 Answers
817 Consultations

5.0 on 5.0

You are not eligible for deduction u/s 80EE as this was available for house acquired and loan taken upto 31st March 2017 only.

Further, deduction u/s 24 will be availble only after construction is completed. Interest charged till that date will be available as deduction in five equal instalments beginning with the year in which construction is completed.

Harsh Kumar Garg
CA, Panipat
26 Answers

5.0 on 5.0

U/S 24(b) you will get deduction limited Rs 200,000 and after that any interest figure remaining you can carry forward the amount for 8 years and get deducted in subsequent year.

U/S 80EE you will get deduction of Rs 50,000 over and above the limit mentioned above. But Condition is this should be your first and only house.

And deduction your are able to claim only after completion of the house i.e in your case you may claim starting from FY 2018.19. Pre completion interest can be claim as deduction in 5 equal annual installment.

Faizal Mohammed
CA, Ahmedabad
11 Answers

Not rated

If nothing has been paid in the current year, you cannot claim any relief/deduction.

You can claim the benefit in the financial year 2018-19 once you start paying.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

If you have not paid any interest during FY 2017-18, you can claim any deduction under section 80EE and 24.

Please feel free to call/ revert in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi,

If you haven't paid any interest for this year, you can't claim any deduction for this year.

Also, deduction u/s 80EEis not applicable to you since you have taken the loan for extension of existing house and not acquisition of your first house.

From next yead when you start repayment of your loan, you can claim deduction u/s 24.

Regards

Sunny Thakral
CA, Delhi
224 Answers
8 Consultations

5.0 on 5.0

The interest on EMIs can be taken on accrual basis, i.e., even if such interest is not paid due to holiday in repayment period or simple default. The EMI for the construction period can be allowed in 5 equal annual installments after the occupation of the house.

B Vijaya Kumar
CA, Hyderabad
965 Answers
124 Consultations

5.0 on 5.0

You will get interest deduction under section 24 on submission of interest deduction certificate from PNB.

Conditions to claim Deduction u/s 80EE

1. This is the 1st house you have purchased (not for repairs & renovation)

2. Value of this house is Rs 50 lakhs or less

3. Loan taken for this house is Rs 35 lakhs or less

4. Loan has been sanctioned by a Financial Institution or a Housing Finance Company

5. As on the date of sanction of loan no other house is owned by you

In the above case, you will not be eligible for Section 80EE

Vishal Mudumba
CA, Vijayawada
15 Answers
2 Consultations

5.0 on 5.0

Dear Sir,

Interest benefit u/s 80EE and u/s 24(b) is 2.50 lacs and principal benefit of Rs.1.50 lacs u/s 80C is also available.

You can claim the benefit for next year only i.e. A.Y. 2019-20 as you started repaying loan from 01.04.2018 itself.

Thanks

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

In my opinion, deduction u/s 80EE will not be available to you since it is toward FIRST house PURCHASED.. while this is extension of your existing house.

Secondly, you seem eligible for section 24. Since pre construction interest on loan will not be allowed as deduction because this is only reconstruction/repair/renovation and not purchase/construction, post construction interest will be allowed as deduction. A deduction of upto Rs.2 Lakhs per annum on accrual basis is available in this case because construction will be completed within time.

Thanks

Siddharthh Jain
CA, Gurgaon
55 Answers
1 Consultation

5.0 on 5.0

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