DEDUCTION ON REPAYMENT OF HOUSE LOAN UNDER SECTION 80C

Table of Content

• Final Thoughts on 80c Deduction
• There are 3 different aspects involved in repaying a Housing Loan.
• Section 24 (Tax benefit on interest paid):
• Income Tax Benefit on Housing Loan

This benefit is over the Rs. 2,00,000 allowed under Section 24. What should you do if the loan is taken while the property is still being constructed but you have already started repaying the loan? In this case, the tax deduction will not be allowed before the construction is complete. The maximum amount that is allowed as a deduction under Section 24 is Rs. 2,00,000. In case the property for which the loan has been taken is not self-occupied, no maximum limit has been prescribed and the whole interest amount is eligible for a deduction.

Yes, the interest received on the tax-saving FD will be taxable. However, in the case of a senior citizen , a deduction of FD interest to the extent of INR 50,000 can be claimed under section 80TTB. Only individuals and HUF are eligible to claim deductions under Section 80C of the Income Tax Act. Purchase/construction should be complete within 3 years of taking the loan to be eligible for this deduction. If you are taking the home loan after 1-Apr-2016, then this limit is 5 years. Is the mortgage interest and real property tax I pay on a second residence deductible?

Final Thoughts on 80c Deduction

Banks and Indian post offices allow you to open Tax Saving Fixed Deposits. They have higher interest rates than regular deposits. The interest earned in this deposit is taxable. You can invest a maximum of ₹150,000 in a financial year for tax-free plans. For an individual or Hindu Undivided Family , the amount that goes towards the repayment of the principal on a Home Loan is eligible for a deduction under Section 80C of the Income Tax Act.

First of all ,as per section 24 ,Interest is allowed on the accrual basis not on paid basis . So to answer your query I assume that interest paid and interest accrued is same. This is important for me as I will not be able to complete 3 years from agreement/allotment without registration/possession. But I get an impression from this article on the link, that it does not matter if I sell before or after registration/possession. Only important thing is duration of holding which is calculated between sell date and allotment date. So make sure you sell the under construction property before possesion/registration and after three year of agreement.

There are 3 different aspects involved in repaying a Housing Loan.

30,000 monthly salary, the maximum loan eligibility will range between Rs. 8.10 lakh and 9 lakh for a loan tenure of 60 months. Most lenders require ITR to process your home loan application. If you are unable to provide ITR returns, your application may not be accepted. ITR is important to assess your creditworthiness and ensure that you will be able to pay your EMIs on time. The tax break is shared by each party in proportion to his contribution towards the EMI repayment. The content of this site is copyright-protected and is the property of Piramal capital and housing limited.

To start with, I bought a 3bhk flat with reputed builder in Noida in the DP plan for Rs 43 lacs in Sept, 2009..For this i took a loan of Rs 30 lacs from the bank & paid rest myself . My property papers were subsiquently kept with the bank. Out of 7435 ,Interest amount can be claimed as a interest on house loan and if house is self occupied it is shown as minus income from house loan and reduced from your income .

Section 24 (Tax benefit on interest paid):

If a person takes a home loan with another person, then both have separate deduction limits. For example, for principal repayments, the limit of ₹ 1.5 lakh under section 80C will apply separately to both borrowers, thereby giving them tax benefits of ₹ 3 lakhs in aggregate. The loan is allocated to the owners in the ratio of their ownership and they can claim deduction accordingly. Also, since Section 80EEA does not specify that the property must be self-occupied, you can claim the rebate on your rented or deemed-to-be-let-out property.

My aim is to keep every thing transparent even I have to more tax. Loan amount Rs 32 Lakh and balance from savings. Kindly advise how to show notional rent,what is the criteria for notional rent to be declared.

Is it fine / permissible to show the full rental income in my wife's name while submitting IT return as an income from housing property for one floor? And also is it fine to show loan interest under section 24? The maximum benefit under section 80C is limited to INR 1.50 lakhs per annum. All investments exceeding this limit will not qualify for tax benefits. You can claim a deduction of only the principal repayment from your total income under section 80C.

ULIPs combine life insurance coverage and investments. A part of the premium goes towards life insurance. The rest is invested in equities or debt instruments. SubsectionTax DeductionsThings to KnowSection 80CCCIt is used for annuity pension plans.

There is a longer lock-in period for PPF, which is 15 years. Investment payments, maturity amounts, and interest are tax-free. You can secure your retirement with this scheme.

You must construct a house within five years from the time of the loan. You can claim a deduction for the year when construction ends. Section 80c of the Income Tax Act has a great advantage. It allows you to claim tax rebates on investments.