Tax benefit on home loan and interest

I bought a flat jointly with my father on home loan from bank which sanctioned 80% of the cost of flat only in favour of me , father being 2nd applicant. 20% of cost of flat was paid by me partly from my savings and partly from loan from mother whose tax liability is clear. Father, is retired, outside tax bracket and contributed only a meagre amount. The flat was registered in March/2016 for which I paid Registration fees and Stamp duty. At the present  the house is 
left vacant for my father and other family members to keep residing within a 
short time after some all belongings are shifted. The location of flat is in 
Kolkata while I am residing in Chennai in a rented house.. Loan and interest recovery has been started from May/2016. it is myself who is repaying the loan and inerest. What extent of tax benefit will be available during financial year 2015-16?
Asked 5 months ago in Income Tax from Kolkata, West Bengal
In the financial year you only can avail the interest and principle component of Housing loan. Father is mere in the document with no contribution. 

Also the house you said is a self occupied house with your family living in it . Thus interest of Rs.200000 for housing loan will be deductible and principle will be deductible U/s. 80C upto the max limit provided. The same will be allowable only from the FY 2016-2017 as the recovery is starting from May 2016.

In the fY 2015-2016 you can claim the registration and stamp duty charges paid for purchase of the flat which is allowable U/s. 80C which is restricted to 150000 including all the other deductions like LIC, PPF etc.

Shyam Sunder Modani
CA, Hyderabad
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I totally agree with Mr. Shyam. 

Please feel free to revert in case of any doubts. 
Abhishek Dugar
CA, Mumbai
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Dear Sir,

1. you can claim deduction of entire amount even if your father is mentioned as co-applicant in the loan as long as you make the entire repayment subject to the limits mentioned by Mr. Shyam.

2. Yes, you can only claim INR 1.5 Lakhs. However, limit for medical reimbursements are separate i.e. 15000 per annum.

Please feel free to revert in case of any queries.

Thanks and Regards,
CA Abhishek Dugar
caabhishekdugar@gmail.com 
Abhishek Dugar
CA, Mumbai
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Yes you can claim only Rs.150000 U/s. 80C which is inclusive of PF, LIC, etc.

You can claim the total interest portion as you are paying the Loan installments and your father is only entered in the document.
Shyam Sunder Modani
CA, Hyderabad
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In 15-16 you can claim registration and stamp duty charges upto 1,50,000/- under 80C.

You can claim interest deduction benefit of Rs 2Lacs under income from house property



Saket Jain
CA, Greater Mumbai
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Hello Sir,

Based on the information provided by you it appears that you have purchased a House Property.

In that case you claim only a Maximum of Rs.150,000/- under Section 80C which includes your PF, Insurance everything.

You can also claim a maximum of Rs.200,000/- as Interest paid against Housing Loan which will be shown as a Loss in House Property.

Trust this clarifies your query. 

Please feel free to call/ get back in case of any further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP 
Rohit R Sharma
CA, Mumbai
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Yes.

Section 24 says interest.

Principle will be deductible U/s. 80C and interest will be exempt U/s.24
Shyam Sunder Modani
CA, Hyderabad
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Section 24 - interest payment
Section 80C - principal repayment 
Abhishek Dugar
CA, Mumbai
766 Answers
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Dear Sir,

Yes you are correct. You can claim a Total Deduction of Rs.350,000/-

U/s 24 - Interest - upto a max of Rs.200,000/-

U/s 80C - Principle - upto a max of Rs.150,000/-.

Trust this clarifies your query. 

Please feel free to call/ get back in case of any further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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