Please Help: Housing Loan Principal Payment
Posted Date : 04-Jan-2012 , 01:37:50 pm | Posted By: CA Vinod Kumar
Category :
Income Tax | Answers :
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Comments :
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Dear Expert,
My Client owns a single house and has taken loan to acquire that house.
My question is that whether he can take the deduction of the principal amount while calculating total income.
The wording of the section says that income from the property must be taxable under the head HP,,,Please reply
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Answers:
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 Answer by: PRIYANKA |
| Yes, ur client is eligible to take deduction of the principal amount u/s 80C while calculating total income and of the interest amount as well from Income from house property..in which Income would be nil and interest deduction would be claimed..as Annual value of one self occupied property is taken as NIL. So u r actually offering the income from house property to tax but as per rules of calculation for house property given in Income tax act, its annual value would be taken as NIL, resulting in both the benefits being eligible to be taken, i.e,interest paid on loan taken for house property would be claimed as loss from house property and principal repayment would be claimed as deduction u/s 80C.
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| Answer by: Siddharth Bumb |
| yes ofcourse your client will get benefit of repayment of housing loan. As you said that income from the property must be taxable under the head HP, it is correct. Interest on loan will come under HP income and you can take maximum benefit of principle payment amount of loan u/s 80C Rs 100000.
and agree with Ms Priyanka.
rectify me if i am wrong.
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| Answer by: Mrattunjay |
| yes up to 1 lakhs,
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| Answer by: Ketan Samdani |
| Yes deduction u/s 80C can be claimed.
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| Comments |
| Posted By : CA Vinod Kumar |
05-Jan-2012, 02:37:13 |
| Thanks Siddharth and Rishu garg,,,have a nice day |
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| Posted By : Rishu Garg |
04-Jan-2012, 09:31:31 |
| Yes Priyanka is right.
Principal Amount can be claimed as deduction U/s 80C and Interest Paid on Loan can be claimed as deduction from the Income from House Property (Rental Income)otherwise it would be claimed as loss from House Property and can be set off against other income. |
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| Posted By : CA Vinod Kumar |
04-Jan-2012, 05:10:49 |
| Thanks a lot Priyanka for your kind attention,,,,,have a nice day,,
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| Posted By : CA Vinod Kumar |
04-Jan-2012, 05:10:20 |
| Thanks a lot Priyanka for your kind attention,,,,,have a nice day,,
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