- 24(b) (Interest )
- 80 C (repayment of House loan principal )
- 42% person has selected answer B , i.e House loan interest and loan repayment,both, can not be claimed if house construction is not completed before end of previous year .
- 38% person has selected answer D , i.e House loan interest can not be claimed but house loan repayment benefit can be claimed even if house construction is not completed before end of previous year.
- 12% person has selected answer A , i e House loan interest and Loan repayment,both, benefit can be claimed even house is not completed before end of previous year.
- 8% person has selected answer C , i.e house loan interest can be claimed but loan repayment benefit can not be claimed if house is not completed before end of previous year.
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.
- 10.05.2010 to 31.03.2012
(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of (installment of house loan) "
Repayment of loans, etc., taken for purchase/construction of house - Whether deduction admissible under sub-clause (ii) of clause (b) of sub-section (2) where construction of house is still continuing during previous year relevant to assessment year 1988-891. I am directed to refer to para 4(8)(e)(ii) of this Department’s Circular No. 489 [F. No. 275/51/87-IT(B)], dated 25-6-1987 [see under section 192] wherein the incentives provided under section 80C to the income-tax payers in respect of housing loans, etc., taken from specified institutions have been explained.2. References have been received from some quarters enquiring whether the repayment of loans taken for the purchase or construction of a new residential house property, the construction of which is still continuing would qualify for deduction under section 80C.
3. According to the provisions of sub-clause (ii) of clause (h) of sub-section (2) of section 80C, in computing the total income of an assessee, a deduction shall be allowed for any sum paid towards the purchase or construction of a residential house property subject to the fulfilment of the conditions laid down therein. For the admissibility of this deduction, the construction of the house property should be completed after 31-3-1987 and the income from the same should be chargeable to tax under the head ‘Income from house property’ in the relevant assessment year. For the guidance of Drawing and Disbursing Officers and other persons responsible for the payment of income chargeable under the head ‘Salaries’, it is clarified that in a case where the construction of the property does not get completed by the end of the previous year relevant to the assessment year 1988-89, no deduction under this provision shall be admissible to the assessee in the assessment of his income for this assessment year. This aspect may please be kept in mind while deducting the tax at source under section 192 in the financial year 1987-88.
- 80C (repayment of house loan) and
- 24(b) (Interest on house loan )
- House loan repayment deduction u/s 80C for complete financial year 2012-13. and
- Interest on house loan
- one fifth of pre-construction period interest i.e 1/5 of interest up to 31.03.12 and
- Complete interest of Fy 2012-13.
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