Income tax rebate on housing loan repayment - case of housing unit cancellation

Section 80C states that you can claim deduction of principal repayment under section 80C only if the income from such property is taxable under income from house property i.e. it is owned property and you have the possession. Since you don't have the possession you won't be able to claim deduction of principal or interest amount.

So I guess if the cases reopen they will disallow such deduction.

Regarding legal expense it is to state that whether or not you can claim legal expense depends on nature of income if you are only earning salary income you won't be able to claim deduction of such income. However you may claim it as deduction against the interest you have earned from the builder under income from other sources.

However you will need the receipt from advocate because generally whenever there are any such expense in income from other sources assessing officer asks for proof.

Therefore you can claim such expense against interest income but you will have to take the risk of not having receipt. You can take a chance if you have paid the advocate via account payee cheque.

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Thank you

The house maintenance charges can't be claimed as deduction under any section as it's personal expense.

Regarding deduction I would say that section 80C is proper to claim deduction of principal payment of house loan and interest payment of such housing loan can be claimed u/s 24 of the income tax act.

80TTA is for claiming deduction of savings bank interest upto ₹10000. How are you using and linking it here.

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Hi,

- Amount received as interest from the builder on the basis of court order will be taxable as income from other sources. Yes you can claim expenses incurred on the recovery of the amount from the builder. If the amount is paid through banking channel to the advocate then you can claim it but subject to disallowance by the AO as you don't have invoice and receipt for the same.

- Rent free accommodation is taxable as perquisite. No you cant claim FMC.

- You need to share complete information about your investments and expenses incurred in F.Y. 2017-18.

Thanks

Dear Sir,

Hope you are doing well !

1. No, you will not be able to claim deduction of principal or interest amount as you do not have any possession.

2. You can claim expenses incurred on the recovery of the amount from the builder against income from other sources (interest earned from builder) subject to appropriate supporting documents.

3.Practically, you can not claim without any proof/receipt. However if you have paid to advocate through banking channel, you can claim but again it is subject to litigation.

Thanks & Regards,

Payal Chhajed

Dear Sir,

1. No, you can not claim for rent free accommodation under FMC. It is your personal expenses, will be taxed accordingly.

2. Please share complete data / information about your investments and expenses incurred in FY 2017-18 . So, we can advise you properly.

Thanks & Regards,

Payal Chhajed

Hi

Yes legal expenditure can be claimed as expenses,but its always advisable to have proof for the same.

Rent free accommodation is taxable perquisite,cannot be claimed under FMC.

a. Claiming deduction for an underconstruction property is anyways invalid.

B. Legal expenses directly linked to earning interest an be treated as expense against the interest income.

C.Without any proof of payment, it's difficult to claim it as an expense.

Hi,

Please find answers to your queries:

1. Income tax claimed during the AY years 2009-10 to 2013-14 is invalid as you did not have possession.

2. if you have proper supporting documents, you can claim expenses incurred on the recovery of the amount from the builder

3.He should give the receipt for the same. If you have paid through banking channels it is still fine else you may not be able to claim the same.

Regards,

Nikhil.

1. You cannot claim for rent free accommodation under FMC.

2. You can share the complete data about your investments and expenses incurred in FY 2017-18 and then I can advise accordingly.

Regards,

Nikhil

Hi

1. The claim was invalid. For under-construction properties, no deduction is allowed for principal repayments. For interest payments, deduction is allowed in 5 equal installments starting from the year of completion of construction.

2. Legal expenses that directly relate to earning such interest can be claimed as expense.

3. No. You need a proof of payment. If the amount is paid through bank, expense claim could be considered.