Home loan

Hello Sir,

1. Principle benefit of upto Rs.150,000/- u/s 80C, Interest Benefit upto Rs.200,000/- under section 24 of house property.

2. For the purpose of Interest it has been increased to 5 years.

3. From the date of Disbursal but many officers claim sanction date which is debatable.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

1) The repayment of principal amount can be claimed as deduction u/s 80C upto Rs. 1.5 Lakhs. The limit of Rs 1.5 Lakhs is for all expenses and investments eligible for deduction u/s 80C like PF, PPF, Life Insurance Premia, Investment in specified mutual funds etc.

The interest upto the date of possession will be capitalised and allowed as deduction in 5 equal annual installments from the year in which you take possession.

2 & 3 ) The time frame of 3 years is not for the purpose of acquisition of house, unless you want to claim exemption of Long Term capital gains on sale of your properties.

In the year of possession you will get that year interest and principle full benefit. For the interest paid for under construction period you will get 1/5th claim for 5 years from the date of possession.

If construction/acquisition is not completed within 5 years from the end of the financial year (3 years till financial year 2015-16) in which capital was borrowed. For example, a loan is obtained for construction/acquisition on 28 Oct 2011 then the deduction limit should reduced to Rs 30,000 if the construction/acquisition completes after 31 March 2017.

first Loan disbursal date as per the act (As per our view)

Dear Sir,

1. You are allowed to take benefit of principal repayment upto Rs.150,000/- u/s 80C, Interest Benefit upto Rs.200,000/- under section 24 of house property.

Further, you can claim interest paid during pre-construction period in 5 equal installments starting from year in which construction got completed.

2. For the purpose of Interest deduction, time limit has been increased to 5 years.

3. From the date of Disbursal.

Hi,

As per Budget 2017, To claim tax benefits on home loan of a Self-occupied Property, the construction has to be completed within 5 years from the end of the Financial Year in which the capital (home loan) borrowed.

As you borrowed loan is FY 2013-14 ,the construction should be completed in FY 2018-19.

As you will get the possession in FY 2017-18, you can claim deduction of interest and principal amount from FY 2017-18.

and claim previous years interest amount as prior period interest and can be availed for deduction in five equal installments from the year the construction is complete.

Hello,

1. The benefit for Principle is Rs.150,000/- and Interest is Rs.200,000/-.

2. It has been extended to 5 years.

3. Date of disbursal - but is subject to litigation.

Regards

Keerthiga Padmanabhan

M.Com., CA, LLB

Sir you can refer to the Budget and also Section 24.

Hi,

I am producing this from income tax bare act:

Section - 24, Income-tax Act, 1961-2017

Deductions from income from house property.

24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:—

(a) a sum equal to thirty per cent of the annual value;

23(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within 24[five] years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed two lakh rupees.

Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:

Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.

Explanation.—For the purposes of this proviso, the expression "new loan" means the whole or any part of a loan taken by the assessee subsequent to the capital borrowed, for the purpose of repayment of such capital.

The deduction for the repayment of principal component of housing loan is covered u/s 80C and there is no restriction on time limit for possession of the house from the date of loan disbursal.

Dwar Sir

This cap of 200000/- on interest is = interest paid in current financial year + 1/5 th of interest paid in construction phase of house

Please feel free to call/revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Can be claimed seperately.

In my view, the cap of Rs 2 Lakhs includes the 1/5th of the interest paid during construction period.

HI,

1st option, pre construction interest is the part of the cap of Rs 2 Lahks.