Section 24 Income Tax Benefit of a Housing Loan
A house loan repayment has two components – principal and interest – and both of these components are treated differently for tax benefit calculation purposes.
The principal amount is covered under Section 80C and has a Rs. 1 lakh limit. In order to claim the tax benefit under 80C the house should already be constructed, and should be a residential property.
Section 24: Tax Benefit on the Interest On Home Loan
The interest on the home loan is treated differently, and Section 24 deals with the tax aspect of the interest on house loan repayment.
The maximum limit under this section is Rs. 1,50,000 and you don’t have to actually live in the house to claim this benefit.
The interest payment is deducted from your taxable income and thus reduces your tax liability. There is no limit on the number of houses you can claim this as well as the location of the houses. The only limit is Rs. 1,50,000 on the whole amount.
There are special conditions like when you get the loan disbursed before the construction of the house and pre – EMI interest and Raag has covered these aspects in a lot of detail in his post about tax benefits of a home loan which you can read if you were interested in those details.
Correction: An earlier version of the article stated that the 80C deduction is only available if you are living in the house. CA Karan Batra notified me that you don’t have to live in the house to claim deduction. Apologies for the mistake.Â
Can anyone explain the exemption part with an example ?
Thanks In Advance.
Rohit – it’s in the post I linked to at the bottom of mine, it has a lot of details and you can go there and check out the examples. I don’t want to duplicate some of the excellent work that Raag has already done in that post.
Rs. 150,000 limit is applicable only in case of self-occupied. If the house is given on rent, limit of Rs. 150,000 is not applicable and can claim any amount as interest
Great – thanks. This and more details are present in the post I linked to so that’s recommended for further reading.
I have only one house and that is let out, so can i claim deduction more than Rs. 1.50 lacs?
An employee can claim maximum Rs. 1,50,000/- tax benefit under section [24b] or which ever is less on self occupied house well if he owns another house and declares rent and has a house loan repayment for the second house also after considering the muncipal taxes paid and a standard deduction of 30% towards repairs and renewals he can claim rebate on the interest repayment which is unlimited but my question to you is, is it over all limit of Rs. 150,000/- for both houses or in addition to this 1,50,000/- for self occupied house can he claim rebate on the second house please clarify.
Dear Sir, Please advice if there’s tax benefit, if i am living in a rental apartment ?
thanks & Regards,
PS: Appreciate your site and the wonderful information you are giving, thanks
I can’t think of anything besides the HRA thing – that you would be aware of I guess.
Cud u please explain HRS ?
thanks
sorry hra…
You probably don’t get HRA as part of your salary and if you do then that’s one thing that automatically leads to some tax reduction. There is no additional investment you have to make. You can read this article here:
https://www.onemint.com/2007/03/21/treatment-of-hra/
There is a section 80GG which gives you deduction on rent paid for residential accomodation if one is not entitled for any HRA benefit from employer or a rent free accomodation.
The deduction is minimum of :
1. Excess of rent paid over 10% of Adjusted Total Income
2. 25% of adjusted total income
3. Rs 2000 p.m.
yeah than Q i have it cleared
than Q?
Whether i can get benifit of 80C for principal value of House loan & 24 for intersest toghether.that means my total tax benifit will be 100000+150000,is it true
Yes ila. You can take both the benefits
I have a home loan account jointly with my wife as co applicant. My wife does not claim any income tax benefit. Shall I get only 50% benefit U/s 24(i).
If your wife is earning and files her income tax return, then yes you can claim only 50% benefit u/s 24(i), but if she’s not working but is only a co applicant as she’s the joint owner of the house, then you can claim 100% benefit.
Hi Sir,
your article is very informative.
I have couple of queries
1. If we are paying an Interest of 2, 80,000.
Can I claim Rs. 15 L income tax benefit and my husband 1.3L tax benefit.
-House is on joint name
-Loan account in joint name
-EMI payment also goes from the joint account.
2. Can house maintenance, house tax paid comes under
Net Income / (Loss) from House Property which includes 1.5L of interest as max.
So income from house property will be the -(sum of interest+ maintenance + house tax)
Please let me know.
Regards,
Seema.
Seema,
Ownership of the house makes one eligible for the tax benefits that can be claimed by an individual but in case you are just a co-borrower and not the co-owner in a joint loan then tax rebates cannot be availed by you. Conversely if the co-borrowers are co-owners of the property then the tax rebate will be available in the proportion of their share in the loan. Hence repayment capacity of each co-borrower should be considered before deciding on the share of a loan. If the co-owners are equal owner of a property but if the share of a loan is 2:1 then the tax benefits will also be availed in the same ratio.
If the person paying extra for repayment excluding EMI, let me know weather this repayment will be deduct from his taxable income.
Yes smita, as paying extra amount reduces the principal amount of loan so this payment comes under the section 80C and you can claim benefit upto the overall limit of Rs 1 lakh.
I have taken home loan of rs 20 lakh in which 5 lakh is margin money.can i get tax rebate for margin money like principle interest?
Can you elaborate what you mean by margin money please?
Amit,
You are referring to downpayment.No you do not get tax benefit on downpayment amount since it is not counted in home loan.
My wife and her widowed mother are co-owners of a property and are co-borrowers as well of the housing loan. However we don’t know what is the share of the loan for each of them. How can I know that?
Further the mother retired in Oct 2010 and since then residing in the said property. All the EMIs till date have been paid by my wife from her account (however a prepayment was made last year by my mother in law). So can my wife claim 100% of tax benefit arising out of the interest paid.
Finally thanks for the very informative post!
The bank should provide that information surely, how else could you find it out? I can’t think of any other way.
hi,
had a query with respect to the interest deduction.
if money is borrowed for construction/purchase of house under construction, is there any deduction for interest during the construction period. or will it be aggregated till finish of construction and then allowed as deduction over the next 5 years?
Sameer,
The deduction of interest payment during construction period is available only after the posession of house in 5 year equal installments.
i have a flat at chenni, and i got retired on 30th sept2011 till retirement i was paying emi instaments from my salary. On retirement with my retirement benefits i have closed my housing loan fully. since i am bank employee i have availed my housing loan on funded interest method(principle paid first and then interest portion). am i eligible the this interst portion under sec 24 of incometax act , (i purchased the flat in the year 1997)and my instalment started in the year 1998 after mortorium period.kindly enlighten me.
Dear Srivatsan,
If you have availed housing loan from a notified institution then you are very well eligible for interest exemption.You can also verify from the institution as every bank.FI which gives housing loan also gives to the buyers interest deduction certificate.
Hi,
I need some explanation on the following.
1. My husband and I have taken a joint loan of 20 lakhs in Aug 2011, we both along with his father is the co owner of the flat. Will Me and my husband can get tax benefit or can only 1 avail of it.
2. Secondly we are paying an high interest rate on 20 lakhs, if we pay 5 lakhs to the bank as prepayment how it work? will it help me in anyways to pay the amts in bits. Total amt that gets deducted every month is 26K out of which 22K goes in Intrest and 4 towards principal
3. Please explain the prepayment procedure or table of home loan. I have to pay prepayment charges o f 2 % to my bank if I prepay the home loan.
Please assist me what can I do??
Tricia,
1. You both can avail the tax benefit in proportion of your ownership
2.Even if you prepay the interest component still remains the same.the strategy is more useful to reduce the EMI burden.
3.The prepayment charges are on the outstanding amount as on date.
Hi ,
I had just gone for a Home Loan of 25 Lakh and flat is under construction.
Could you guide me if I’m eligible for HRA and Interest Rebate(Under Section 24) both.
Or
I’m eligible for one out of two above?
Or
I have to wait for its completion until I can get benefits said above and how it will go then?
Thanks
Puneet
Puneet,
You cannot avail both. Since the flat is under construction you can avail HRA benefit till you get the possession.The interest for construction period you can avail the deduction in five yearly equal installments once after you get the posession of house.
To add further I had purchased this Flat on Down Payment basis means on 95% of payment is down to builder(Mine part and Loan part by bank). Only 5% plus other small charges needs to be paid after possession.
Regards
Punet
If I have already paid the tax for the interset part of housing loan, Can I file a refund latter !?
Fernando,
Yes you can claim refund when you file your ITR.
If an NRI goes for joint homeloan with resident spouse and both are the co-owners of the house, then resident partner can claim tax benefit on the part of EMI and principal amount he has contributed towards repayement of the loan? To claim tax benefit what is the procedure? whether the loan EMI has to be paid through NRO account. What if the loan goe through NRE account and resident partner pays his EMI to NRI spouse by depositing in NRO account.
Awaiting for the reply.
Shakuntala,
Yes Resident partner can claim tax benefit towards repayment in proportion to the share in property. However, it will be good if the loan repayment can be done through partners account and NRI transfer the funds of his share.Otherwise, transferring the payment to other account does not make eligible for claiming housing loan tax benefit.
I will buy a ready to move in flat during April 2012 using 80% home loan and occupy the same by Jul 2012 from currently rented flat. Can I claim HRA deductions till Jul’12 and interest amount rebate on home loan between Jul’12-Mar’13?
shilpi,
You can claim HRA benefit till the time posession of house is not given to you.
Any interest repayment during this period can be claimed in equal installments in subsquent years after the possession of house.
I have purchased the flat in the name of my wife but homeloan is in my name she is house wife
can i will get home loan interest rebate.pl suggest
Rajesh,
You have raised a very interesting question. Under Section 64(i) (iv), the income arising to the spouse of the assessee from assets transferred directly or indirectly to the spouse by such individual otherwise than for adequate consideration is clubbed as the income of that individual. In simple English it means that the income arising out of the house that is purchased from the cash gifted by you shall be taxed as your income.
Hence, tax benefit should be available.
But i am still not clear how you got a loan on any property which is not in your name.?
thank you very much for your comment and I got the loan as she is co applicant I am main applicant loan is taken from HDFC
Dear sir.I would like to ask you that i am having LOAN FREE HOUSE. If i will take loan on this property for reconstruction/ maintenance, THERE IS ANY TAX BENEFITS ??
REGARDS
No sir, it is not second house.I have purchased it in cash.
Now i would like to take loan for maintenance 7 reconstruction.There is any tax benefits ? Regards
Sir Kindly let me know whether IT benefit is available for 2nd housing loan or not?
Kindly let me know.
Is the second loan for a second house? That’s what it looks like – can you detail out your situation please.
No sir It is not second house.We have purchased in cash. Now we are need loan on it for reconstruction & maintenence. There is any tax benefit if i take loan??
Ashok,
If you have already a house and buying any loan on it, then its Loan against property and not a home loan.You do not get any tax deduction in Loan Against property.
I have taken a home loan of 20 lakhs and my EMI starts in April. Me and my wife are co-owners of the apartment and co-applicants in loan. She is a housewife so could i avail of the entire 1 lakh principal + 1.5 lakh interest exemption? Do i need to sign an agreement to show that i would be paying the EMI’s? What all are the legal formalities?
Ratish,
Although the tax benefits are available in the ratio of the share of each individual in the home loan, to avoid future hassles the share of the home loan and other such details should be put on the stamp paper in the beginning only. Also every borrower has to provide a copy of the borrower certificate to claim their respective tax relief. Two separate copies of such certificates along with a copy of the agreement signed between the two co-borrowers would be needed to file for tax benefits. There are chances that either of the borrowers misses on the tax rebate, so in that case one can claim it as a refund at the time of filing tax returns.
In case if you are availing the full deduction then you will have to get a declaration from your wife of not aviling any tax benefits.To show EMI payment,opt for your bank account.
according to the bankstatement i payed 47000/Rs (both principal or interest) during the year 2011-12 does these whole amount calculate income tax rebate ?
Shama,
Yes this amount is fully deductible from your income under two section -80C & Sec 24.
But you need break up of amount within these sections as their deduction heads are different. Also Sec 80 C you might not be able to avail if you have made other investments upto Rs 1 lakh and you have to show both the deductions under seperate heads while filing your returns.
Banks generally give break up also when they send you Tax Deduction Certificate.
please suggest me :I have taken the home loan in my name and i am repaying the loan but the property is in my wife’s name she is not working can i get rebate in income tax.
Rajesh,
If you are not the owner of property then home loan tax benefit is not allowed.
Sir,
I have taken a home lone worth 25 lacs in feb 2011 and satying in same house for long now. Need your expert advise to know that during this current financial year what should I put in my TAX declaration. Should I use HRA as tax saving element as i give 20 k per month to my mother or should I use home loan for tax rebate. my HRA amount is 18892 per month.
Also is it possible for me to claim both.
The house where we live in is in name of myself and my mother and i have a running loan of 25lacs.
Gourav,
You cannot claim for HRA if you have a self occupied house.
Hence, claim for loan benefit.
I have taken a home loan in my wife’s name.I am the co -applicant.We registered the property in my name and in my wife’s name.My wife is working .
Now the questions are
1) Shall I (Co applicant ) avail the 100 % tax benefit?( 1 Lakh and 1.5 Lakhs)
2) Reallhy my wife doesnt want to avail the tax benefit since i am in 30 % tax slab and she is in 10 % tax slab.So how to get 100 % tax benefit for me??
Saranavas,
You can take 100% benefit.In that case your wife will have to give a declaration in writing that she is not taking any benefits from this loan.
Dear sir,
I have taken a housing loan for 50 lacs. How much tax benefit can I expect. I come under 30% tax slab .I have a life insurance for rs.60000. Every month from my salary rs.13360 is being deducted as tax. Please advise as to where all i can invest to avoid this amount getting deducted from my salary every month.
yearly i am paying 90,000 as principal and 4,20,000 as interest.Shall
I claim 45,000 + 1,50,000
Wife – 45,000 + 1,50,000
if we use 50 % + 50 % share.
Please suggest
Saravanan,
Any individual can claim upto maximum limit only i.e. Rs 1 lakh under sec 80C and Rs 1.5 lakh as interest. You cannot claim more than this .
Hence if you utilize your wife share then only you both will be able to claim higher.
dear Sir,
I have purchased one house in my wife’s name, who is house wife,and staying in same house and the house is insured in my name. The EMI is going from my salary, whether I will get in-come tax benefit ? if not then whether i will get HRA benefit?
If your wife is the sole owner and home loan is on your name then you won’t be able to avail tax benefit.You need to be co-owner of property if not the full owner.
HRA benefit also cannot be availed as you are staying in house and Rent to spouse is not considered by income tax.
Hey. I think you can give rent to your wife. But the same has to be reflected in her tax statement. I have read it somewhere. Please correct me if I am wrong.
hi i had a few questions relating to income from house property:
1) for section 24 (b), if i have two houses with one utilised as self occupied and the other as deemed let out, then can the interest on capital borrowed for the self occupied house be used as deduction for the deemed let out house property?
2) if i have a self occupied property, then annual value is nil. in that case can i still deduct interest on borrowed capital to get a negative net annual value, which can be set off against other sourcesof income?
3) does house property also include other commercial property like warehouses, shops, commercial establishments?
thanks in advance
sameer
in case of deemed to be let out property what would be the interest deduction on home loan
u/s 24?
SIR, I PURCHASE FLAT IN JOINT NAME WITH MY WIFE,WIFE IS WORKING IN GENERAL INSURANCE AND I AM WORING IN PVT LTD COMPANY. HOUSING INT AND PRINCIPAL EMI GOES FROM MY SALARY ACCOUNT ONLY, CAN I TAKE ALL THE INCOME TAX BENIFIT AGAING INTEREST AND PRINCIPAL
Girish,
Yes you can take the full deduction.Your wife will have to give a declaration in writing that she is not availing any tax benefit.
sir ,
i have taken home loan for construction purpose from HDFC BANK. The property owner is my mother and i m paying the loan amount . so can i get income tax rebate.?
PLZ REPLY FAST…………..
Deepak,
If mother is owner of your property then you cannot claim the tax benefit on home loan.You need to be co-owner in property to avail the benefit.
thank u sir
sir ,
i want to take home loan for construction purpose from SBI BANK. The property owner is my mother and i m paying the loan amount . so can i get income tax rebate.?
IF NOT THAN SUGGEST ME OTHER OPTION
If mother is owner of your property then you cannot claim the tax benefit on home loan.You need to be co-owner in property to avail the benefit.
Sir,
I have taken a home loan jointly with my wife and purchased a flat (Under construction at that time ) and opt down payment option and paid to the Builder. My wife is also co owner in the property and she is not earning now. I am paying 100% EMI from day 1. Can I take the 100% tax rebate ? Till time registry is pending.
Very Terse and Effective explanation!! Thanks a ton!!
Hi,
I have taken a loan for house purchase from a relative at 12% per anumm. So the interest that i have paid to him is tax free or not. Can anyone please suggest?
If yes then please suggest the section.
Regards,
Rahul Jain
Rahul,
Interest payment to friends and relatives can be claimed u/s 24 but only against a certificate received from them. In the absence of the certificate, you would not be eligible for the deduction. The recipient of interest income who issues the certificate is liable to pay tax on the interest income that he receives. As far as the principal payments are concerned, they would not qualify for tax benefit as loans only from notified institutions and banks are eligible for such deductions.
tahnks for your feedback,
the home is in my wife’s name and EMI is going from my salary, where i am not getting tax benifit, if we will shift to rented home, then can i avail HRA benifit?
Mania,
Both benefits are not allowed simultaneously.
thanks for prompt reply,
sir, i am not getting a single benefit, because the home is in my wife’s name and when we are staying in same room, so HRA is not eligible. my question is that if we will shift to other rented room, whether i will get HRA facility and my wife will do return file, what ever rent she will receive.
And second thing, the home loan is in my name, the bank statement is coming in my name, only registration is done in my wife’s name.
third is what is the process of co-occupier, in co-occupier, can i get tax benefit?
I have only one house and that is let out, so can i eligible for interst deduction for more than Rs. 1,50,000/-
Sumit,
On first house you can claim only upto Rs 1.5 lakh.
Hi Jitendra,
I had read the sec 24 wording but it not specifically written.
Can you throw some light on it?
Thanks
Sumit,
If your property is let out then you can very well claim deduction on interest repayment without any limit. i.e. there is no limit on interest deduction for let out properties.However, your rental income will be taxable.
Hi,
I and my Husband are co -owners and he is the co – applicant of homeloan taken recently.
The EMI will start from next month and EMI will go from my account and he will transfer 50% of the EMI amount to my account every month. In this case can he claim tax benefit upto 50% of the contribution or should he be the joint account holder of the account from which EMI goes out.
Shakuntala,
Wiser choice would be to either have a joint account as transferring funds does not make you eligible for tax benefit.
I co-own a house with my parents but there is no loan. The house has been bought free and clear.
If I buy a second house on loan, would I be eligible to rent it out (really or nominally) and claim rebate on the full interest of the home loan?
Thanks,
Aditya
Aditya,
Yes on second property you can claim the full interest amount for deduction.
Thanks for the prompt reply.
Aditya
Dear Mr. Solanki
sir, i am not getting a single benefit, because the home is in my wife’s name and when we are staying in same room, so HRA is not eligible. my question is that if we will shift to other rented room, whether i will get HRA facility and my wife will do return file, what ever rent she will receive.
And second thing, the home loan is in my name, the bank statement is coming in my name, only registration is done in my wife’s name.
third is what is the process of co-occupier, in co-occupier, can i get tax benefit?
Mania,
Its difficult to get a tax benefit when property is in somebody else name and loan is in your name.If you have made yourself a co-owner during registration of property then you would have availed the benefit.
If you shift to a rented house, you can claim HRA benefit even if you are paying a housing loan.
Dear Sir,
my friend is staying in one house with parents. He booked another house which he will get possession in next 2 years. Now he want to book another house which he will be getting in
next 6 months. Whether we will get benifit for 3rd house ? if Yes , How ?
Regards
Pravin D
Contrary to popular opinion, there is no overall restriction of Rs. 1, 50,000 on the interest payable on a loan taken to acquire/construct a house property or in respect of more than one property. In fact, this deduction is available for any number of properties and is without any limit under specific circumstances.
The calculation of income from house property (which means the rent you earn) has to be done separately for each property owned by a person. Home loan repayments are eligible for deduction for each such property.
Dear Mr. Solanki,
My dad and I jointly own the house and we have jointly opted the home loan. I pay EMI thro’ my account and have submitted NOC (that my dad is not availing any tax benefit from the said property) to my employer. They have considered my entire contribution and same is getting reflected in my Form 16 as well.
For AY 2012-13 when I am filling ITR2, there is a field which asks whether House Property is co-owned? and how much is the contribution? I cannot put 100% contribution in my name, since it is not allowing me. If I put 80:20, still the tax calculation doesn’t change, because I am putting the exact information as per Form 16. Please do let me know, if I am mistaking any bit here?
Thanks in anticipation,
Ankush
Hi Ankush,
Haven’t gone through this information.
Give me a day or two, will reply to your query
Sure, Thaks.
Sir, any further update on my query?
Sir, please respond.
Ankush,
I am still not able to get the query resolved.I have to consult a CA on this matter.Will ensure i reply your query by EOD.
Thanks a ton! Much appreciate this.
If you can answer this as well please?
Is there any provision of tax saving on the second home-loan, where the property is under construction. Also, the first home-loan is still outstanding.
Thanks,
Ankush Jain
In case I am buying a second home ,which i do not plan to rent out. How is the deemed rent calculated? Is there a ready reckoner?
For illustrative purpose, lets say I buy a second home which costs 10LAC and the annal interest on it is 120,000.00. Can i say that the rent income from this property is inr 30,000 per year (at 3% yields as are currently prevalent)?
Thank you,
Akshay,
Generally, the rent is calculated on the basis of annual rental value fixed by the local Municipal authority on basis of which they charge municipal/house taxes. However, if there is a Rent Control act and a standard rent is fixed for any location, then this become the maximum rent one can charge and so will be considered while computing deemed rent.
There is no defined formula and you need to get information on these two aspects.
sir i have two hosing loan from two different bank on same property,kindly tell me can i claim the benefit of 80c on both housing loans
How did you get that? Its illegal to have loan from two banks for the same property. You actually need to submit all property papers to the Bank from which you borrow loan. Obviously, if you take loan from two banks, both the banks will not be able to have all your property papers. Bank obviously will not disburse loan amount unless they have the papers.
sir,
the loan gien by second bank is on the guarantee of first bank.
Ankit,
Are these two loans of same amount for full value of property?
Section 24B is actually dead investment. As per my knowledge, you can even mention loss in share trade in that section. However, I have a question. I have a land loan for which 80c is not applicable. Can I get 24B exemption on this?
Thanks Jitendra for the answer.
I have received a proper certificate from my relative about the interest that i have paid to him. So now i am eligible for tax benefit? Please suggest
Regards,
Rahul jain
I don’t think so. Loan from financial firms (That too only home loans) will be considered for tax rebate. Loan taken from individuals will not count.
Rahul,
Yes you are eligible for the interest you are repaying. As said earlier you cannot clam section 80C under this.
Hi Jitendra,
Do you mean, interest paid on any loan is eligible for IT rebate under 24B? This was my question actually. I have a land loan for which I cannot claim 80C rebate. I am thinking whether it is possible to claim 24B for interest paid!! You have mentioned above that certificate from relative is sufficient for claiming 24B tax rebate. Then I hope it should also allow for other loans – like Personal loan etc. Please clarify.
Regards,
Sudhindra
Sudhindra,
Under section 24 you claim deduction on home loan taken from relatives also.However only the interest is eligible as section 80C is only from a specified institution.
Since, there are no tax benefits provisions on personal loans so you cannot claim it from anywhere.
Sir,
The plot is in my wife’s name and I took a home loan and repaying the EMI. My wife is co-applicant in this home loan. My wife is filing ITR for other sources income only.
Will I get the full Housing Interest Rebate on this house even I don’t have ownership/joint ownership in this house.
Ramesh,
You do not get home loan benefits on buying a plot.Its only the house on which you can claim tax benefits.
Agreed Sir,
I purchased the Plot in my wife’s name but from my income and took home loan from bank for construction. EMI is also paying by me only.
Further my wife is filing ITR for Other Sources income and doesn’t have any other income.
Whether I am eligible for the Rebate of Housing Loan interest, in view of clubbing of income.
Ramesh,
Clubbing of income does not apply in home loan. If property is not on your name then its difficult to claim any tax benefit.You need to be a co-owner in it.
dear Sir,
i donot have the income tax return copies so can i get the home loan still.
my salary is 27k.
kindly advise.
thanks & Regards.
Devendra
i am 3/4th share holder of the property. but i am the only one who is repaying the loan as well as the interest on the same. i get the claim of whole of the interest on this housing loan.
Rajan,
Yes you can claim interest by taking declaration from other holders that they are not claiming any tax benefit.
can i get the claim for whole of the interest.
Allotted flat in December 2006. Construction completed and possession in August 2012. Can I claim tax benfits for the interest on housing loan for the pre construction and post completion period now ? If so what are the limits?
Devarajan,
Yes interest during pre-construction period can be claimed in five equal annual installments once you get the posession.However, it will be under the limit of Rs 1.5 lakh only.
Thank You for the reply. Please note that the first installment of Home loan was taken in December-2006 and last installment in 2010. Period of completion is about six years from first installment and two years from the last installment of home loan. I propose to rent out the home. Please advise accordingly for this type of situation.
URGENT- The house is owned by the father, the housing loan is given in the joint names of father and son considering the income of the son. The son repays the loan. Whether tax benefit can be given to the son eventhough the house is not owned by him but housing loan is opened in the joint names of father and son
Sandhya Someshwar
Sandhya,
No, if the property is not in the name of the son then the assessing officer may not allow the tax benefit as one need to be owner or co-owner in the property.
Is there no tax deduction on loan taken for acquiring land?
No
sir,
Our house is in my dad’s ownership, rules of area are he can not sell or lease for 10 years, now its 6th year. We want to construct first floor, I am working, and want to take loan and claim tax exemption, kindly suggest me what can be done?
Thanking you
Do you have article, how Pre-EMI has to be included in the tax benefit ? Is that something, after construction is over or even before(pre-EMI) has to be claimed. I know, vaguely, it is divided into five equal installments of five financial years. When does it starts ? After the hand-over of home(in that financial year)
Sunder,
Tax benefit starts when you have got the possession of your house.
i have taken a Housing loan of 4000000 for construction of my house for 5 years.i have taken the loan on 05/06/2012 ,am i liable to get tax benefit of 150000 every year till my loan remain as payable ……will i get the deduction of 150000 for 5 years…?
Mavila,
The deduction of R 1.5 lakh is available when your house gets constructed.Any repayment during preconstruction period can be claimed in 5 equal installment when the construction gets completed.However, this benefit is within limit of R 1.5 lakh.
Sir,
We have plot on my Mother name and she is 60+ age, i want to take home loan for it’s construction as i m salried person.
How Can i get the rebate on home loan if i will pay the premium.
Regards,
Anil Gupta
Anil,
You should be a co-owner or owner of the property to claim the tax benefit.
I feel that the Rs.1,50,000 is not the ceiling if Second Housing Loan is taken to purchase a house and the second house is rented out . For the second house , there is no ceiling , even if the interest component goes beyond 1 .5 Lakhs
Yes Mr.S.Antony, on second house one can claim the deduction without any limit.
Dear Sir,
For a financial year , If the total interest payment ie. post possesion period interst and 20% of pre-possession period interst becomes more than Rs 1,50,000 , then whether this amount will be limited to Rs 1,50,000 itself for income deduction purpose?
Yatinder,
Both combine pre and post construction you can claim upto Rs 1.5 lakh.
Hi,
Property is in both wife and husband name. Home loan taken on husband name with wife as co-applicant. Can both avail for tax exemption (50% each of loan interest)?
EMI is deducted from husband’s account, wife transfers 50% of EMI amount before ECS debit date. Is this fine? or should they hold a joint account and transfer the ECS debit to this account?
Regards,
Gauthaman
Gauthaman,
Both can avail the tax exemption in ratio of ownership of property.The best way to claim deduction is from a joint account or distribute EMI payments in case of individual account.
Thanks for your suggestions. Will take the necessary step
Regards
Gauthaman
Gautahaman,
A correction here.
You avail tax benefit in a joint loan in ratio of the loan.So if you have both have a 50% ratio in loan then each of you can claim 50%.
Hello Sir
I am planning to purchase a plot in bangalore. Please advise if i have go for a plot loan or buy the plot and then go for home loan during construction. I also want to know if the tax exemption are available for plot loans.
Harsha,
Tax exemptions are available only for construction of house and not for plot.
My son is working in a govt sector purchased a house on his wife name in the year 2002.Recently he purchased a flat by taking a loan in the bank and paying an EMI of Rs 16,500 pe month.Is he eligble for tax exemption on loan amount.
Thanking you,
S.Babu
Dear Mr S.Babu,
Yes he is eligible for the tax exemption on the loan amount if he has the ownership of the flat.
Dear Sir,
I have a house which is rented out.
thereafter i booked second home for which possession is obtained and i plan to shift in it in coming months. Now Can i treat 2nd house as self owned and notionally rented out, for the purpose of getting IT Tax benefit on home loan interest without any limit ( ofcorse after deducting notional rent income) ?
Yatinder,
Yes you can treat that house as self occupied.
dear sir, i have purchased a flat with my spouse as joint owner. The approx yearly interest component paid on home loan is 4.5 lakh. Whether 1.5 lakh limit shall be applicable individually for both of us or the same shall be divided b/w both of us. please give ur expert advise.
Dear Sumit,
If you have taken a joint home loan then you both can claim Rs 1.5 lakh seperately in proportion of your ownership.
sir,we purchased a flat in joint ownership and paying an interest of 6lakhs an year for the housing loan.whether we can claim both individually 1.5 lakhs each tax exemption.or only 75000 each.please advice us
Jacob,
If its a joint loan then both of you individually can claim upto Rs 1.5 lakh in the ratio of ownership.
Thanks for your reply. I am staying in house property owned in my name which i have let out to my company and getting self-lease every month. For this property balance loan amount was paid in Jan 2012. Recently i have purchased another ready built flat with my spouse as joint owner. which shall be let out on rent. The approx yearly interest component paid on home loan is 4.5 lakh.
1. Wherther 1.5lakh limit is still applicable for both of us or total yearly interest(4.5lakh) shall be divided b/w us in proportion of ownership.
2. Income/loss from house property shall be calculated considering both properties.
3. Please provide any ready-calculation/ article for calculating house income.
dear sir,
ur reply is awaited..
regrds
sumit mishra
Jitendra,
I am confused a bit in e filing the TAX. I have Home loan and got possession now want to get rebate on the interest. Now which sheet should I fill ITR1 or ITR2. ow if it ITR1 then where should I specify the amount over to which I want to file rebate.
Regards,
Prashant
Prashant,
For getting the house loan exemption income from house property need to be calculated.
Consult a CA.
Sir I am paying Income tax on a income of 4 Lakhs after LIC, Ifra bonds, Mediclaim & NPS and I have a housing loan 15 Lakhs paying interest around 2lakhs per year kindly calculate my taxable amount after deduction.
You will have to approach a CA for doing that – there are far too many variables involved in that and it can’t be calculated like this on the comments section of a blog.
Hi ,
I have got married recently and my wife have already bought a apartment with her name in home loan.
She is salaried when purchased the apartment and started claiming the home loan in tax benefits . But she is now planning to quit the job, in this case can i claim the home loan for tax benefits ?
If no is the answer . Are there any suggestions how to claim the tax benefits in my name for home loan.
Home loan details :
Tenure – 15 years ( 2years already completed in repaying EMI)
we are already in possession in the apartment .
Home loan in my wife name .
Rajesh,
you can claim the tax benefit if you are co-owner in the property and jointly taken the loan.
Hi,
I have taken a home loan. The property is in my name. Now can I add my wife as co-applicant and get the home loan transferred. The property is in my name only. Do I have to do something to change the property under both of our names.
Please do help me..
Thanks & Regards,
Senthil
Senthil,
Consult a lawyer in this matter who will be able to gudie you more wisely.
Hi there, If I buy home but still continues to stay in the rented flat, do i get benefits of both ? ie. deduction of 150,000 (interest component) from my taxable income AND at the same time, HRA benefits (house rent allowance) ? Thanks, Jignesh
Shah,
Yes you can claim but there are some conditions attached to this which you need to factor in before claiming for any exemption.
I have taken a housing loan and brought a house and I am living in the same. The housing loan was closed as of last year. I am planning to buy another house in the same city where I have the first house , what are benefits of loan now. My first is obviously comes under self occupied. The second will be rented out. How do i go about declaring this houses in IT.
You advise/suggestion would be highly appreciated.
-Suresh
Suresh,
You can claim tax exemption on loan taken for second house without any limit.The rent received will be included in your income on which you can claim a standard deduction of 30%.
Hi
I have received the form 16 from the employer and missed to delcalre the interest on house loan amount. While filing in the IT returns, is it possible to add the interest amount so that my net taxable income reduces? I didnt find a Section 24 (which is for the interest towards the home loan) in the IT return form.
Please help.
Thanks in advance.
Subrat
Subrat,
Yes you can do it.It is calculated under section “Income from house property” .
Dear Sir,
is offer letter from builder for taking possession of house is sufficent for claiming home loan interest benefit or the date of actual possesion of the house is material to commence the benefit of home loan interest ?
Yatinder,
The actual date of possession is important to claim the tax benefit on housing loan.
Dear Sir,
My wife & my self jointly got an apartment from by a will executed by my deceased father-in-law. We want to sell it and purchase another apartment in the name of my wife. Extra amount needed for new purchase shall be obtained by a Bank/ LIC loan. I shall be the co-applicant and I will repay the loan as my wife is not working. I already own 2 houses in my name and paying EMI for the same. I am an IT asessee and my wife is not, being a house wife. My question is :
1. Whether any capital gains tax is liable to be paid for sale of the house ( either by myself or my wife) .
2. Whether any tax benefit can be availed for the proposed new house ( in the name of my wife) .
Mr>ramana,
Yes, the capital gains arises in case of inheritence also.The cost of acquisition in this case will be taken as the cost at which your father-in-law purchased it.
2.If house is in your wife name you cannot claim exemption unless you are a co-owner in the property.
I and my wife are joint owners of the land and taken a joint house loan from SBI. But the EMI repayment is done fully by me. She is also salaried, but she is not claiming income tax benefit out of this loan. Please let me know whether I can claim full tax benefit out of the interest and principal repayment?
Mr.Mansoor,
Yes, you can claim the fill exemption.Your wife will have to give a declaration in writing that she is not claiming any tax benefit.
Dear Sir,
We are residing in a house from past 21 years without any loans now we need to renovate while staying in house, and i am planning for home loan will i be able to avail tax benefit where 4 of our family members are owners to the property?
ChadrPrakash,
You can claim deduction up to Rs 30000 p.a. on this loan.
I have not shown Housing loan details to my organisation and hence the details are missing in my Form 16. However I’ve all details (especially statement from housing loan provider) now.
I am still eligible to submit these details and re-calculate my taxes during IT filing?
Your response would be of great help.
Regards
Karthik
Karthik,
If you have missed the information in form-16 you can claim it during ITR filing.
I bought plot and constructed house in it now I am getting 150000 tax benefit on interest component. If I construct 1 or 2 house above my home with separate house loan for renting purpose, Will I get tax exemption on the interest paid towards 2nd home loan?
Regards,
Shodhan Kini
Shodhan,
Since the ocnstruction will be on the same property you won’t get full exemption.However, you will be able to claim exemption upto Rs 30000 available for for house repairs /improvement.
Hi,
Just like Karthik I did not show the housing loan details while declaring the income, and now I’ve I quit from the job. I received the Form 16 from my employer and it does not contain the details of housing loan principal repayment. The property is in the name of my father but the loan was granted considering my salary too. The provisional Interest certificate from the Bank includes both of us names. I’ve paid the 70 % of the EMI via cheque or cash payments (not interested in tho’). After I got the SB account number (Father’s) registered online, I’ve transferred it via my salary account. The Housing Loan account number is different from this though both are from the same bank.
Can I show the amount transferred to my father’s name and file the return? If yes, can I submit the monthly statements showing the transferred amount.
Thank you!!
Sunil,
Transferring the money to other account is not granted any tax exemption by the income tax department.Also the loan can be jointly, but if the property is not in your name you won’t be able to claim tax exemption.
Hi Jitendra Ji,
I want tax rebate on house loan interest, (house self occupied) which ITR do I need to fill? ITR-1 or ITR-2? And which section Do I need to fill this in ? Is it income from house property?
Manohar Rawat
Manohar,
You need to fill it under “Income from house property”.If you have only one property then ITR 1 is the right form.
I want tax rebate on house loan interest, (house self occupied) which ITR do I need to fill? ITR-1 or ITR-2? And which section Do I need to fill this in ? Is it income from house property?
Maulik,
You need to fill it under “Income from house propertyâ€.If you have only one property then ITR 1 is the right form.ITR 2 is used for more than one property.
Hi,
I have taken a home loan against a 3 bhk flat around 4 years back.
I bought this flat from builder in pre-launched. Now I have done the entire payment (except stamp duty & registration) of my flat and got the possession.
When I am asking to get home loan rebate (on principle & interest), my employer is asking me to produce registered sale deed agreement.
Since all the flats are not completed yet I am unable to register my flat.
I wanted to know that is it really mandatory to have sale deed agreement in order to get income tax rebate on home loan. if yes do i have any alternate?
FYi. I have all documents except registered sale deed agreement i.e bank loan sanction letter, sale agreement, possession letter, Bank certificate for re-payment.
Many Thanks,
Deepak
Deepak,
The property is not counted in your name till you register it.That’s the reason you are not able to get any tax rebate.
Hence, you will have to first pay the stamp duty, register it and then claim for the tax rebate.
Dear Sir,
I had purchased a house in Sept.2002 after taking loan from Bank. I am getting IT rebate on the loan amount (interest + principal). Around Rs.35,000/- on interest portion.
In 2010, I have purchased a flat after taking loan of Rs.20.0 Lakh from LIC. I have paid Rs.1.65 lakh on interest portion this financial year.
This financial year (2011-12), I have paid around Rs. 2.0 lakh on interest part Housing loan of LIC & Bank.
Now, I am having one house and one flat. One house, I have given on rent basis and getting Rs.25,200/- rent per year.
Sir, Please tell me how much rebate will I get on interest portion of loan Rs.1.5 lakh or more than Rs.1.5 lakh. I have paid more than 2.0 lakh income tax this financial year (2011-12).
Please reply my queries Sir,
Many Many thanks
nk sahu
Sir
I am eagerly awaiting your reply.
Thank you,
nk sahu
NK Sahu,
When you have two houses one is treated as self occupied and you can claim Rs 1.5 lakh interest on it.On second house you can claim housing loan tax exemption without any limit i.e. the entire interest.Hence, you will be able to claim Rs 2 lakh in your case for both the houses.
Sir
I have following queries by seing your blog..
1. If you going to fill your ITR by efiling mode than there is no need togive any documents than how income tax department come know that at what date you got possession with resistration ?
2 I have two houses and both are rented while I am living in govt quarter so do not get HRA in salary. In this situation which ITR form need to be fill for ITR ?
3. One house is with my name and other flat is resistered with name of myself and my spouse. In resistration share of parnership is not defined. Whole EMIs(of both houses) are paid by me. Now My wife has started to work as private teaching but she is earning only 50000 RS per years and she is also going to fill ITR from this assessment year. She will not claim any intrest benifit. Can I get intrest lost benifit for both houses ? Even my wife is co-applicant in one flat, can I claim 100% intrest loss for that property as I am paying 100 % EMI ? What is methord to convey to ITD as I am going to opt effiling process ? Pl suggest best way in which I get maximum benifits.
4. As you know that we could not rented both houses through out 12 month because of 11 month aggement we are generally doing. So practically we got 10 to 11 month rents. How it can be reflected in ITR form ?
5. I requasted to go through the HP(House property) schedule of ITR-2 and suggest how to fill as per my above situation.
6. Can I get benifit intrest loss of 300000 by both ITR(my & my spouse) as per above situation ?
P l reply urgentaly as last date for filling up ITR is 31 July,2012.
Regards
Hi sir,
I am living in Pune whereas my wife and children are living in Bangalore. We have a house at Pune and recently bought a house at Bangalore. Both the houses are reigstered on our names as co-owners. The annual interest paid on Pune home loand is about 1.5 lacks and 6.5 lacks for Bangalore home loan.
On Pune house, I am claiming IT benefit of interest paid on it as owned house.
On Bangalore house, can we both claim income tax benefit on the interest paid? Our share of finance is 70: 30 between myself and my wife.
If yes, can I show Bangalore house as deemed rented house (as I stay at Pune), whereas my wife (who is staying in the house) show it as owned house? In such case, can I be allowed to claim IT benefit on Bangalore house as second house, where as the same is owned house for my wife?
please clarify
thanks
Nagarju,
You can clam tax benefit on second house without any limits.One of your house will be self occupied and other will be deemed rented.However, as co-owners you can claim in the ratio of ownership only.Also, the same house cannot be shown as self occupied by one and deemed rent by other.
Nagarju,
A clerification for you.
Co-borrowers, who are also co-owners, are eligible for tax rebate in the proportion of their share in the loan. So, a couple can be equal owners but if their share of the loan is in the ratio of 60:40 or 70:30, the tax benefits would be shared in that proportion.
Sir/Madam,
I bought a new flat this year and possessed the flat on 1st July, 2012. The flat is regestered. I was planning to buy a 2nd flat. Shall I get tax exemptions on two flats ? What are the options ? If there are two home loans from two different banks are both tax free ?
Abhinash,
On one flat which will be counted as first, you can claim interest deduction of Rs 1.5 lakh only while on second house you can claim without any limit.
After calculation, I get to know that I have to pay tax. So in challan 280, which type of payment should I have to select? ” Self Assesment (300) or Tax Regular ASsessment(400)?
Sir,
pl clarify the followings:
1. I have taken a house in co ownership with wife. First name of my wife and second my name. Ratio of share not deffined in deed.
2.Taken house loan in my account although wife also coborrowers but i am main borrower as i have income.
3. presently i was taking home loan benifit and paying EMI.
4. Now I want that I should pay rent to wife for the same house and claim house rent deduction. Further, my wife will show rent in her return.
5. Wife will pay amt of EMI to me and i will pay tp bank. then whether wife can claim deduction of interest.
6. whether ownership of house can be shown in booksin the name of wife assuming that i home loan was taken for wife.
Kindly suggest.
Thanks in advance
I am staying in house property owned in my name which i have let out to my company and getting self-lease every month. For this property balance loan amount was paid in Jan 2012. The same is free from any loan. Recently i have purchased another ready built flat with my spouse as joint owner. which shall be let out on rent. The approx yearly interest component paid on home loan is 4.5 lakh. Can you please confirm the following.
1. Wherther 1.5lakh limit is still applicable for both of us or total yearly interest(4.5lakh) shall be divided b/w us in proportion of ownership.
2. Income/loss from house property shall be calculated considering both properties.
3. Please provide any ready-calculation/ article for calculating house income.
My father has taken loan for a flat and also flat is in my father and mother’s name, but the EMI is been paid by my brother. now as he is paying EMI he is not able get benefit in Tax.
Can you please suggest what we could do, can we transfer the loan in his name, also if we can transfer the flat in his name but we do not wish to pay huge amount for flat registration.
Thank you
Rinu,
Loan does not get transfer unless the ownership is in his name.In your case, your brother name will ahve to be included to claim tax benefit.
We have a house in the name of my father who was expired few years back. I wanted to buy with the consent of my brothers/sisters. Can I get Home Loan from bank? Can I get benefit in Income tax for Interest on Loan?.
Subha,
Your case i sof succession where you are one of the legal heirs.I do not think you can avail home loan unless you are buying it.For more clarification consult a lawyer.
SIR
I AM CONSTRUCTING HOUSE ON MY WIFES PLOT. I AM THE GUARANTER BECAUSE SHE IS HOUSE WIFE. IHAVE TO PAY FULL EMI. CAN I CLAIM FOR TAX BENEFIT. IF YES PLS TELL THE PROCEDURE OR IF NO HOW TO GET THE BENEFIT
I AM CONSTRUCTING HOUSE ON MY WFES PROPERTY. FOR THAT I HAVE TAKEN LOAN FROM SBI AND I AM PAYING FULL EMI. SHE IS HOUSE WIFE. HER INCOME IS ZERO. SO SBI TAKEN ME AS A GUARANTEER . CAN I GET THE TAX BENEFIT.
Hello
I am planning to buy a flat for 60 L in Bangalore and use it for 10 years and sell the same after 10 years. I am planning to buy this on full bank loan for 10 years. Please reply how do I compare cost of the flat after 10 years and how much loan (interest + principle amount) i will be paying in 10 years in today’s interest rates. These numbers I want to compare with expenses of house rent for 10 years in Bangalore. Please reply and guide me ASAP.
Thanks
Prabhu
Dear sir,
I am taken a home loan for construcion of home on my own name in the month of May2011 and costruction started, mean time i have paid monthly interst without principle amount, and construction complited in the month of May 2012, and given complition certificate to the bank. So i want to known how should i get the tax benifit on interst paid.
Deepak,
Interest paid during pre-construction period can be claimed in five equal installments once you get the possession.So if you have paid interest of Rs 1 Lakh, you can claim Rs 20000 every year fr next five year when the construction gets completed.However do remember that this is within the limit of Rs 1.5 lakh under sec 24.
I have taken residential land purchase loan in July 2011 and started construction on the same in April 2012. Can I calim rebate for interest & principal repayment on resident land purchased ? Please guide me for the same.
Thanks
Naveen,
You cannot claim deduction on purchase of land.
Hello,
I have taken home loan of 915000 and want to avail tax benefit, what are the documents which i need to submit for availing the benefit. I mean do i need to collect bills from the bank to which i am paying the EMI.
Thanks,
Sampath Kumar
Sampath,
You get a provisional certificate at start of financila year and actual certificate at end of the year from the bank to claim Tax Benefit.This certificate gives breakup of principal and interest.If you haven’t received ask from the bank.
Thanks a lot for the info Jitendra
Hi, Can i claim HRA as well as Int on Housing loan uner Sec 24 and Principal under 80 C if i am not staying in the constructed house. But i am staying in a rented house that is close to my office.Both the houses are in the same city.. but because i want to stay near to my office i have let out my constructed/purchased flat and staying near by to office for rent. Please suggest me the solution. I have a ready a case study where this kind was allowed.
clarification awaited….
Nagendar,
Yes you can claim HRA along with Loan Deduction.But there are one conditions which should be fullfilled.
Read my previous comments
During the Form C…i mistake and declared wrong amount in the Form C..and accordingly Form 16 prepared..
So i want to know what is care taken during the Income Tax Return….
Regards,
KC
Kiran,
You can file the correct ITR based on the documents you have.
interest on housing loan to be shown under which head in ITR I while efiling?
Also how does the income tax department verifies the information submitted in e filing of ITR I?
is there any need of attaching form no 16?
Prasad,
This benefit is shown under head “Income from house property” .
No there is no need to submit any documents in e-filing.
Jitendra: If I show under head “Income from house propertyâ€, should i show up the amount in negative like (-150000)? Please confirm… Thanks !!
Hi,
I am a co-borrower with my dad, on a home loan taken from HDFC on Nov 2011. we have started paying the installments, however my dad is paying the monthly installments. The flat is under construction in Allahabad (at my hometown), and I work in Delhi. The property would be ready for the possession by end of the yaear.
Can you please explain me, what amount can I claim for the tax purposes for this assement year ? would be great if you could also explain what can be claimed by my father.
Thanks in advance.
regards,
Abhash
Abhash,
Claim of tax benefits depends on the ownership in property.You both can claim interest deduction in the ratio of ownership.if its 50% then you can claim 50% of the total interest amount as deduction.However, do not that any interest payment during pre-construction period can be claimed only after completion of property.
Hi ,
we are planning to take a flat, we will get its possession after 4 yrs . its cost is 32 lakh. we are planning to take home loan for that . as Banks provide home loan upto 80 % only . i just want to know that how house loan can give me benefit for my Tax rebate.
Guddu,
You can claim for principal repayment upto Rs 1 lakh under section 80C and the interest of Rs 1.5 lakh p.a. under sec 24.
Dear Sir,
Kindly reply to my folloing queries.
I am staying in house property owned in my name which i have let out to my company and getting self-lease every month. For this property balance loan amount was paid in Jan 2012. The same is free from any loan. Recently i have purchased another ready built flat with my spouse as joint owner. which shall be let out on rent. The approx yearly interest component paid on home loan is 4.5 lakh. Can you please confirm the following.
1. Wherther 1.5lakh limit is still applicable for both of us or total yearly interest(4.5lakh) shall be divided b/w us in proportion of ownership.
2. Income/loss from house property shall be calculated considering both properties.
3. Please provide any ready-calculation/ article for calculating house income.
regards,
sumit mishra
Interest on housing loan to be shown under which head in ITR I while efiling? If I show under head “Income from house propertyâ€, should i show up the amount in negative like (-150000)? Please confirm…
Ram,
Yes.The house property income in case of housing loan will come negative if you have self occupied property.
please confirm
Can i get Tax benefit on Pre EMI?
Sunil,
You can avail of tax benefits on the interest component of the pre-EMI only after the construction is completed. But that doesn’t mean you will not get tax benefits on pre-EMIs at all. Once the construction is completed, you can show the pre-EMI interest payment in five equal instalments in subsequent years. For example, if the pre-EMI payments aggregate to Rs 5,00,000, then Rs 1,00,000 each can be shown over a period of five years for tax benefits.
However, you cannot claim any tax exemption on the principal amount, if any paid, in this period
With regards to your example, is this Rs. 1,00,000 apart from the Rs. 1,50,000 that I am can claim for each of those 5 years? In other words, will I get Rs. 2,50,000 exemption for the first five years?
Hi,
One query regarding tax benefit on housing loan under 80c and interest payment.
I have taken home loan on my name and I am paying the EMI of 25000/month for a house but I have made my mother(house wife no source of income) as owner of the property. Tax certificate has both our name but legally she is the owner. Can I take tax benefit under 80c and for interest payment.
Sumeet,
If you are not the owner of the property then you will not be able to claim the tax benefit.
Hi Jit,
Suppose If I have taken house on my spouse name and she is not working. In that case can i avail tax?
There is a provision in income tax for claiming tax benefit in case of spouse as owner.But do consult a CA for clerification on this as most IT officers do not allow it if it is done only for tax benefit purpose.
Sir, I have a housing loan for a housing plot (i havent started the construction yet) hence staying in a rented house, can i claim HRA and loan (principal & interest). Please guide.
Rashmi,
You cannot claim tax benefit on a plot.It has to be a house.
I have 2 home loans out of which, 1 would get fully repaid by end of the next month. I live in the same home.
If I decide to buy third house, by taking a fresh home loan – I will have 1 self occupied property which does not have any home loan on it AND 2 rented properties with home loans on each of them.
How does the taxation happen in this case? Do I get the benefit for (Rent – Corporation Tax – 30% deduction for maintenance – total interest ) for both these properties while computing tax?
And would I be liable to pay the wealth tax on it? If so, how it would be computed?
Umesh,
You need to consult a CA in this case.
I have obtained two different housing loan for purchase and construction on my allowted residential plot in Noida as detail given below :
Bank Loan Amount Remakrs
HFDC, Noida Rs. 3 Lakh Loan was taken for purchase of land from June,
2002 to June, 2010. paid compenent as follows:
Principal Compenent : Rs.2,45,107/-
Interest Compenent : Rs. 1,60,129/-
State Bank of India, New Delhi Rs. 20 Lakh For Construction on my said residential
plot from Sept. , 2010 onward for 20 years.
Interest has been paid to Bank till date :
Principal Compenent : Rs. 94,570/-
Interest Compenent : Rs. 2,37,480/-
The construction work has been completed in June, 2011 and I am living in said constructioed home.
Sofar I have not claimed any tax benefit on the repayment of above loans.
You are requeted to please guide me how I can avail the Tax benefit on my earlier loan inetrest and ongoing current loan. Which type of documents are required to submit for claim.
Please reply
thanks
Daljit Singh
Hello,
My husband and myself has taken a joint Home loan and home is also both are owner of home. We want to claim 50-50% tax benefit. but our office is demanding certificate from bank stating share of each borrower.Bank is not ready to furnish the same. Is it written somewhere in official website of income tax about this rule of tax benefit so that we can show it to our office??
Snehal,
In a joint loan you need to specify the ownership in the property documents itself.It becomes much easier to claim.The reason why office is asking this is that in a joint loan the tax benefit is claimed in ratio of ownership and not loan.
Thank you Sir
Snehal,
A clerification.
The tax benefit is claimed in ratio of the joint loan.This should be specified by the bank in the documents.Generally you should while taking the loan insist on the institution to add this details in loan documents.
Details about claim in joint loan is available on income tax website.
hi,
I have constructed a house. started living in.
The loan amount is 150000/-
Can i claim both Housing Loan repayment of Principal of 1 L and Interest 1.5L (total of 2.5L) tax exemption.
Regards
Arun
Yes you can
sir,
my husband and myself applied for home loan for 1200000/- and repaying monthly 14600/- as the total of principal and interest amount.
my husband is paying the repayment instalments fully through his saving a/c only.
can he claim the tax benefit fully as i am not a tax payer?
total how much he can get tax rebate?
LS Jamuna,
The tax benefit can be claime in ratio of ownership.Your husband can claim th efull by taking a written declaration from you for not deriving any tax benefit.
i have taken a loan of rs 34lacs for purchasing a under construction flat which has been booked in joint ownership of my father and wife.can i claim tax benefit
There is a provision of claiming tax benefit in case of ownership of spouse but not father.You will have to consult a CA for more clerification.
Dear Sir,
i have to purchased a well build house at my village whose cost is near to 300000 (3 Lakh Rupees)
if i taken a loan of 3 lakh to purchase this property then can I able to get ITR (principle 1 L + interest -1.5 L)total 2.5 L tax exemptions
As house is ready with construction.
Ravindra,
Yes you can claim if you are buying a constructed house.
Dear Sir,
I have already one flat bought though loan in 2003 onwards and i repaid all instalments and loan completed. Presently i am staying in that Flat.
I am planned to purchase another one flat by loan in another city (Chennai) which is in construction phase. The Flat expected possession shall be in April 2014. Shall i get IT rebate for the EMI payment. How it can be claimed? What shall be limit for that?
Kindly Reply.
Thanks in Advance.
Ganesan
Ganesan,
Any repayment of loan interest during construction period can be claimed after the completion in 5 equal installment in 5 years.However, the interest claimed is well within limit of Rs 1.5 lakh.You do not get any claim for principal repayment during construction period.
Thank you sir
Hi,
I booked a flat. Registration and formalities are completed.
Now I went to SBI bank and the manager says that there is differencr in Blueprint and description in Agreement.
Actually One of the bedroom was is not shown in Blueprint so bank says I looks like 1 BHK Vs 2 BHK mentioned in Agreement. I already informed the Builder and they are working on this.
Pls suggest if anything to be done from my end ?
Thanks,
Parag
Sorry My mistake in description –
Actually there is a bedroom infront of Kitchen and the front wall facing kitchen is not shown in blueprint for that bedroom …which reflects it as 1 BHK as per bank.
thank you sir
Hi Jitendra Solanki,
I have paid an interest of 1,20,000 in the last financial year towards my Housing loan. I am preparing to file returns towards my income tax. As you’ve mentioned, I will claim this money in 5 equal installments as this was part of pre-occupation interest.
I would like to understand from you as to what documents do I need to submit alongwith my returns so that my claim for interest towards Housing loan is accepted by the IT dept and I get the returns. I have papers related to my flat registration, sale deed copy, Bank Interest certificate. Do I need to submit the copies of these alongwith during the Income tax returns filing process? Please let me know.
Thanks,
Prasad
Prasad,
In e-filing you do not need to send any documents except ITRV which is generated.However, maintain all the records to ensure if any query is raised you have the proof.
I have taken the housing loan for housing plot and constructed only 1 small room. I have got the Bank certificate for Interested paid (mentioned as per IT ACT 1961 you can claim in 8oc and 24 section). I am doubt whether to claim or not as its plot but got the strong certificate from the bank.
Can u help whether I can claim?
Hello,
Would like to seek your views on the pre-emi interest reimbursed by the builder. In case the builder reimburses the pre-emi interest paid to the lender, would such reimbursement can be offset against the interest paid or is the reimbursement is treated as a taxable income?
Thanking you in advance
My father in law have house in his name .He has taken loan from bank ,now he is retired from service and he is not able to pay installments of house loan so his son is paying installments.May his son take the exemption from income tax.
P.N.Malviya,
If he does not have any ownership in property he will not be able to claim any tax benefit.
i have a home loan but i have given that house on rent, so in itr1 form where shoild mention the rent received,kindly help
You iwll ahve to fill ITR2 if you have any income from property.
I have taken loan of Rs.42lacs. Can I avail of the taxbenefits u/s 24 & u/s 80.
I am not living in the same city as my house , due to my employment. I am also getting HRA from my employer. Can I also avail of the theH HRA exemption benefit.
Jaswinder,
yes you can claim both.
I have a flat in Mumbai on which there is no housing loan. The loan was completed 5 years back. I work in Mumbai and stay in my flat there. Now I intend to buy one completed ready to move in flat in Coimbatore. The loan amount will be 35 lakhs. Can I get Income tax benefit on both principal and Interest part? I do not wish to give the new flat on rent. As my child is studying in a residential school in Coimbatore, I wish to stay there on vaccations or on their holidays. What should I do to get maximum tax benefit?
I have taken a home loan. House is complete and is rented out. I am paying the emi which has both principal and interest components. will i get rebate on both principal and interest component to the tune of 100000 and 150000 respectively
sir,
We my wife and i have taken home loan from sbi to construct a home on previously perchased plot. The ownership is in the name of my wife. We have taken a home loan jointly.
my wife also working in state govt. but she is not under the income tax slab.
Can i claim the deduction from house property in my income tax return form.
Reply soon.
Thanking you
vikas meshram
Dear sir,
Regarding hosing loan repayment during construction phase it was told by friend that pre-Emi amount can be considered for income tax exemption. What is Pre-EMI? How it can be availed ? Any restriction for that? If it includes Principal amount or interest.
Please explain to know more
Regards,
Ganesan
pls tell us our employees have taken the loan of housing up to 2.5 lakh , so pls tell me how much rebate will gate on principal and interest.
Regds
B.N.KATORE
Bandu,
On principal Upto Rs 1 lakh can be claimed under section 80C while on interest upto Rs 1.5 lakh can be claimed in a year.
Hi
I have recently purchased a house. It’s under construction and possesion is in next 2 years..Can i claim both HRA and housing loan interest if i am living in same location where i have purchased the new under construction house.
Hi
I have recently purchased a house. It’s under construction and possesion is in next 2 years..Can i claim both HRA and housing loan interest if i am living in same location where i have purchased the new under construction house.
Sunny,
Yes you can claim HRA benefits. However, housing Loan benefits during underconstruction period can nly be claim after you receive the possession and that too only the interest.
We have purchased newly constructed flat & registation is in my wife name but the Home laon from HDFC is joint & i am co-applicant. EMI is being paid from her salary.
Can we claim interst benifit as 50:50. If not, if EMI is paid in ratio of 50:50, can i avail benifit of 50% interest besides property is in wife name?
Dhanjay,
Income tax do have provision of claiming exemption in case property is in spouse name.IF EMI si paid form her account then you might not be able to claim it.Have the repayment from joint account then only you can claim any ratio.
I purchased a flat on August 2012 and I will be getting the possession on December 2014. So does this mean I can claim tax benefit only under section 24 (max of 1,50,000)? Please clarify.
Pradhan,
Any interest you have paid during the period if it was under construction, you can claim it after the possession.
Hello Jitendra,
Thank you for providing this information. So this means until I take possession, I can claim the principal amount (max of 1,50,000) only right?
Pradhan,
You can claim only the interest repayment of underconstruction period.
There is no provision of claiming the principal either during the period or after completion.
Hi
Can the registration charges incured for buying new apartment be declared to avail tax benefit? If so under which section
Siva Prasad
Stamp duty and registration charges paid for transfer of property qualify for deduction under Section 80C.
Nice post..you mentioned there is upper limit of 1.5L on interest deduction. On some online forum, I read that if you give house on rent, then you can show (interest paid – rent earned) as loss, and this entire loss is deducted from your taxable income. And this loss does not have any limit; meaning there is no cap of 1.5L on this loss. Now wondering what is correct information, cap or no cap?
Searching pune home,
Yes you ar eright.
FOR LET OUT PROPERTY, actual interest paid/payable can be claimed as deduction.
Thanks for your prompt reply, Mr Solanki. So for let out property (assume second property) if one takes a loan, and entire interest is deducted from taxable income…would it mean that the person would pay zero income tax? Is this at all possible? I think it still does not make much financial sense, you might be saving 30% on income tax, but you still end up paying interest to the bank.
Hi, We have bought a ready-to-move in home and staying there since May 2012.
House is on name of my husband, while I am co-applicant in home loan. EMI goes from my salary account. So How much we can claim to save IT, and whats best way to save maximum on tax, we both come under 20% bracket and has high basic. Thanks.
Vaishaly,
You are making wrong combinations for claiming income tax benefit.
For claiming any tax benefit you need to be a borrower of property either singly or with some share. If not then you cannot claim any tax benefit.However, income tax have a provision of benefits if property is bought on spouse name.But the taxman shoudl be convinved that thsi is not done only for tax benefit.
You both will be bale to claim your respective share only when you both are paying EMI.If EMI si going from your account then your husband will not be able to claim.Hence, first change your EMI outgo to a joint account.
You will be able to claim tax benefit in ratio of your loan only.So if it is 70:30 then teh tax benefit will eb in same proportion.
I am a salaried employee and taken personal loan from my relative for purchasing a house, can I avail exemption u/s 24, as interest paid on housing loan and also clarify to take deduction u/s 80 c regarding principal payment.
in short, if any body takes loan from his relatives for acquiring home, will he be eligible for taking dedcution u/s 24 & u/s 80 C
Dear Team,
Greetings,
I have taken House Loan of 30 Lakhs of which i will be paying around 3,50,000 per year.
Kindly let me know what is the Maximum amount i can claim tax exception for?
Also Please note that the house loan has been taken for buying a SITE and not building a house.
Please assist..
Dear Jitendra,
I have taken loan of Rs 14,90,000 /- in Indian bank and bought a plot , can i avail the tax benefit for this type of loan ? What documents should i ask from then Bank to submit in my company for IT declaration. Also is it possible to extend the same Loan for construction of House ?
Pls advise.
Thanks in Advance
Benny,
You cannot avail benefit from loan taken on a plot.Its only for construction of house.
Sir,
My form 16 says, Rs.58112 is my interest paid for my housing loan, u/s 24(I) (VI).
Investments such as LIC, PF etc come as Rs.101498, hence Rs.100000 is shown as rebate and relief under Chapter VIII, U/s 88. Can u please help me on how to enter these figures in ITR-1, excel utility. I mean where to enter Rs.58112 and 100000
Dear Sir i have taken home loan for purchasing the constructed house but nobody is residing in it. i reside on rent in same city.Can i take tax exemption under 80c, section 24 and HRA benifit.or to get these benifits the constructed house must be rented out….pl advise
“I have taken a home loan from Icici Bank for purchase of property, however my parents gave me money for the down payment, I pay interest to them for the amount of down payment, what certificate would I need to show my company so that they consider interest payment by me to claim tax exemption U/s 24. & can I claim principal repayment u/s 80”
And what if the company which I work for says that this is not possible do we have any incometax website which clearly states that you can claim deduction for interest paid to parents. Kindly let me know of the same as I it would be of great help to me.
http://www.dnaindia.com/money/report_home-loan-from-relatives-eligible-for-tax-claims_1504715
Shridhar,
You cannot claim under sec 80C for the loan taken from your parents. You can claim only the interest part.However, you should document this in writing clearly mentioning the amount of loan and repayment schedule.Good to register it for proof.
HELLO SIR I AND MY WIFE TAKEN A HOME LOAN OF 24 LAKH. I M IS THE CO-APPLICANT IN BANK DOCUMENT. AND THE REGISTRY OF HOME IS TO MY WIFE NAME. THEN CAN I TAKEN TAX BENEFIT IN MY INCOME.
Hi Mahendra,
Yes, Income tax allows deduction in case property is in name of wife only if the purpose of purchase is not only to claim tax benefit.
Hii sir,
I am working under the central govt. of india. now i want to take home loan for the construction of the home which is on the name of my parents. so if i wanted to be the co owner to claim tax benefits then wat do i need to do. will my parents write a will that will work? or is is mandatory to make a new registry on my name?
Dear Tarun,
The property has to be transferred in your name to get the loan benefits.Consult a lawyer.
I have taken hsg loan in 2009 for under construction flat at NOIDA and interest for three years has been accumulated Rs.360000/- and current year’s interest is Rs.100000/-. I have been handed over the possesstion of flat in this year i.e in Sept 2012. Please let me know the total interest exemption for this finacial year.
Regards
S.C.TANEJA
Hi Subhash,
“As per Income tax pre construction period means Interest up to the end of Financial year ,immediate proceeding to the year in which house is completed.
suppose loan is taken on Jan ,2008 and House is completed on 31.01.2010, in that case pre -construction Interest is taken from Jan 2008 to March 2009.
In above example ,even if House is completed on 31.03.2010 then also the pre construction Interest is considered From Jan 2008 to march 2009”.
So in your case you will be claiming Rs (360000)/5 as the interest deduction.
Dear Sir,
this year i had taken home loan interest is paying from january. already i claimed 80c and can i also avail sec.24 or not please let me know from which sections i can claim and what are the documents required for that
Shilpa,
Yes, you can claim under se 24 upto Rs 1.5 lakh if the house is fully contructed. You will need certificate from the financial institutions you have avialed the loan.
I have purchased a flat in mumbai costing amount Rs. 63,00,000/- where I am a owener and my wife is co-owener of the flat. Me & my wife both are working in private organisation.We have taken home loan of Rs.36,60,000/-, where EMI Rs. 37,134/- is deducted from my salary.Currently we are staying in the same flat.Now my question is what is the limit for me & my wife in case of interst and principle amount on which income tax rebale will be claimed.
Hi,
I have a self occupied house on which I am claiming annual deduction of Rs 1,50,00 towards interest paid on housing loan.
I am planning to buy a second house through another housing loan and give this property on rent. As I understand i there is no limit on claiming deduction on interest on rented out property.( To be claimed as loss on house property after deduction the rent recd)
My question is can I claim both:
1) Deduction of Rs 1,50,000 for self occupied house
2) Loss on house property for the 2nd house.
Jitender,
It can be claimed in the ratio of your loan.So if you are bearing 80% and spouse 20% of the loan then same ratio will apply in case of tax benefit.
Hi,
I have 2 houses (One is self occupied and another is also self(Parents staying)) and for both i am repaying the loan. Whether both can be shown in income tax benefit?. If so, how? If not, what to do? Please clarify.
Nanda,
Yes.on first house you claim upto Rs 1.5 lakh while on 2nd there is no limit.
hi can you clarify on the part of no limit on 2nd house. you mean there is no limit of income tax benefit if you have 2nd house??
Dear Sir,
i am planning to opt home loan, may be i wanted pay only interest upto Mar, 31st 2012. due to house it will be under construction, can i get claim for paid interest amt. and what has to be get for getting supporting doc from bank.
Hi Rudrappa
you can only claim rebate for interest paid in the year in which you get possession of the house under construction. The rebate can be claimed in five equal annual installments starting from the year in which possession is obtained.
For supporting docs you need to get home loan interest certificate from the bank which clearly states the EMI paid, pre EMI interest portion , interest portion and principal paid portion.
Hi, Can the rebate be taken after posession for the interest which is paid while the property was under construction. For example, I started paying interest to bank from Feb 2013 till Apr 2016 & i get posession in Apr 2016. Am i eligible to take tax benefit in financial year Apr 2016 – Mar 2017 for the past 3 years? Regards Ambrish
Dear Sir,
I purchased a home by taking loan at my hometown (Mathura) in which my parents is staying. And I live in the company provided house at my workplace in Guwahati.
My eligibility of tax benifit
1. Under section 80 C 1 lac. Is it include my PF amount also?
2. Under Section 24 b , 1.5 lac or unlimited?
Dear Krishna,
Yes, Sec 80C includes PF amount and under sec 24B you can claim upto Rs 1.5 lakh for first house.
Hi
I have purchased a flat and now I am getting possession of the flat. I have got the flat finanaced from the bank and currently a loan is ongoing. Now, I have to register the flat. Bank has agreed to fund the stamp duty/registration charges. If I get stamp dump charges financed from bank, will I be able to claim the tax benifit under 1.5L for stamp duty charges as well just like the ongoing home loan or are stamp duty/registry cost not covered under 1.5L rebate that you get on interest component paid for the current financial year.
Also one more question, I want a second car parking as well? So, will the second parking be covered under 1.5L interest section as well under Section 24?
Topguy,
Yes you can claim stamp duty and registration charges but under Sec 80C .
Sec 24 benefit is on home loan which is the cost of house excluding stamp duty and registration charges.
Dear sir,
I have two house in one city.
First home loan over where i am staying right now.
Second home loan started, which i have given on rent.
Can i claim upto 1.5 lakh or unlited(total) intrest of running loan ?
Dear Vinod,
You can claim unlimited for your second loan interest.
Hi, I have constructed a house in my home town(Lucknow) with a loan of 30 lacs and will be on rent from this month. Currently I am staying in a rented house in Bangalore. Can I claim tax benefit on the actual interest paid (under 24b) ? Or it will be only 1.5 lacs.
What is the benefit if my parents will stay there ?
Dear Sachin,
On first house you can claim only Rs 1.5 lakh interest p.a.
No. You can claim for full exemption on the rented house (limit of 1.5 L does not apply).
You have to deduct 30% of the rental income received from the total interest paid though.
hi,
i m selling my one flat which is purchase in year 2002 and not shown in my books …and getting another property on my wife name … i want to know who we can save my capital gain tax..
Nitin,
Purchase of house in not shown in your books since you already have given tax on the source of funds you are utilizing.
On capital gains it will be saved if invested in another property within two years from date of selling your existing one. But you need to consult a CA first if you are registering it in your spouse name completely.
Hi, I have purchased a flat (under construction – construction link) & possession I will get after around 4 years from now. Now I am planning to make the remaining payment (of around 25 lakhs) via home loan & would like to start repayment back to bank too immediately (monthly EMI including principal+interest).
My question: Would I be able to avail any tax benefit on interest before getting possession or before I get possession (say after 4 years), whatever interest I am paying will not be counted at all?
My second question: Is it possible that I can avail tax benefit on both: HRA as well home loan interest?
Regards Ambrish
Dear Ambrish,
Any home loan interest you pay during construction period can be claimed in 5 equal yearly installments after the possession of your house.
Yes, you can claim both HRA and Loan interest benefit provided you meet the stipulated conditions prescribed in tax lawst
Thanks Jitendra ji for the update.
A doubt here: Say I took loan of 25 lakhs & start paying EMI (principal + interest) to bank from Feb 2013 and I get possession of the flat by Apr 2016. Now say in these 3 years (from Feb 2013-March 2016), I pay around 2 lakhs as interest. So am i eligible to take tax rebate in financial year Apr 2016 – Mar 2017 for this 2 lakhs interest which i paid in past 3 years?
What I understood from your answer is: In Apr 2016 – Mar 2017, I will be eligible to take tax rebate upto 1.5 Lakhs & remaining 50k plus the interest for this financial year (Apr 2016 – Mar 2017), I will be able to take in subsequent financial year & so on.
Is this correct understanding?
Regards Ambrish
I would like to know the Tax benefit things in home loan—–
As I already have a one residential property with home loan. This financial year my Principle amount is Rs.60000 & Interest component is Rs.220000. Out of that I am calming Rs.150000 in section 24c as interest component.
I am planning to buy another property for investment purpose of Rs.30Lakhs with the home loan Interest component of Rs.280,000 Pls confirm if the same amount I can claim more for section 24c as interest component.
Pls help.
I booked a flat in soft launch in oct 2008. The loan of rs 17,00,000 was sanctioned by lichfl in may 2011. I started paying EMI’s from Jul 2011 as interest component only.. can i claim rebate under sec-24??? because my employer says that i can only do it after the completion of the house….
“If you work in a different city then you can claim exemption on the principal amount of your home loan under 80C” This statement of yours is contradicting with the statement that we can claim when we are only living in the house.
There is an exception where you can claim the deduction even if you’re not living in the same house, but that only applies if you are working in a different city.
Dear Sir, I have registered my property in March 2012 which is under construction and possesion in mid 2013 and has Home loan.
Currently, i am staying on rental basis and in different location from my booked property.. Can i claim from income tax benefit ? and what all documents i need from Builder and Banker ? Please help.
Thank You !
Sir/Madam,
I have a vacant plot in the name of my wife. Now i am planning to construct a house by taking housing loan. I am an employee in one PSU and my wife is not working. Whether i am eligible for IT exemption for principal under 80C and interest under 24c? Kindly clarify.
Sir,
I have one existing home loan in one city. small loan of 5 lakhs o/s. where my inlaws are staying. so no rental. but i am showing some nominal rent received.. i am showing this in my IT all these years. Recently taken second house at another city where my parents just occupies. no rent… I am staying in another state on my job. What is my interest cap (1.5 lakh or more) . can i show the second house with out rent where my parents are staying to claim the interest benifit???
Please advise…
Regards
Sarath ,9844073704
HI,
I am buying a flat and making my wife as Co-Owner. I am taking loan on my name as she is house wife. I want to know while taking TAX benefit may I eligible for both principal amount 100000 per year and interest amount 150000 per year OR I can only be eligible for half amount(principal and interest) as I made my wife as Co-Owner so rest half benefit she only can take.
Hope you got my point.
thanks
Hi,
While i live in Delhi, I am purchasing a flat in Bangalore. The flat is slated to be ready for possession in Jan 2014
I am taking a loan of 21 L in Jan 2013 with 3 year tenure paying an interest and principal of:
Yr 1: 190837 & 628224 respectively
Yr 2: 121605 & 697457 respectively
Yr 3: 44743 & 774319 respectively
My annual compensation is 50 L pa
What tax benefit can i claim for the above?
Hi,
I and my wife constructed house which contains 3 kitches. We both are staying in 1st floor. We had let out the Ground Floor Kitches/(2 portions) to our parents seperately for Rs.2000/-each /Month. My salary is 8 Lacs and my wife is 7.5 Lacs. Its a joint loan & joint property. The annual interest is 5Lacs & the Principal amount is 70000. We would like to divide the tax benefit equally. How can we get maximum tax benefit out of this case. Pls suggest
If both of you pay the loan installments equally, then it is advisable to treat the 50% of the loan principal and interest in your account and 50% in that of your wife. Doing this, you will be able to claim maximum exemption u/s. 80 (Rs.100000 x 2) and u/s. 24 (Rs.150000 x 2), and that too within the four corners of the IT Act, since the property and loan both are joint.
Dear Sir,
I have taken home loan in joint name with my spouse for a house in our joint name. My spouse is salaried having a salary account. However the EMI is being presently deducted from my account.
Can we both claim tax benefit of Rs 150000/- separately while calculating our annual tax liabilities ?
ashok
can husand claim benefit of interest rebate for housing loan taken y his wife and he is guarantor of loan?
dear sir,
i have purchased a flat with home loan. what document do i need to produce at my office to get tax benefit. As they are asking to produce possession certificate of flat but the flat is already registered last month in my name as i have purchased ready to move flat.
Respected Sir
Recently I’ve taken joint home loan from SBI for purchasing a constructed house.
I am the co-borrower of the home loan, my mother being the principal borrower.
Further, I am repaying the emi of the loan. The property is registered in the name of my mother only. The ikraarnaama of the property bears the name of both of us.
My query is:
Whether I am eligible for the relief under sec 24 and sec 80c of the Income Tax act?
Would you please provide me with relevant circular(s) or rule(s) in this regard?
Regards.
Hi,
Please help me out in clarifying my concerns related to home loan.
1) Have running loan on 2 properties- 1 in Ghaziabad & 2nd in Delhi.
2) Possession of both the properties has been taken recently in Nov. – Dec. 2012.
3) Property in Delhi is not in livable condition.
4) Residing in a rented house in Delhi.
5) Working in Noida.
Now considering the above facts, my concern related to availing HRA & benefit of tax on principal, interest paying for both the properties are:
1) Can I avail HRA from April 2012 till Dec. 2012 i.e. till the time I got possession of Ghaziabad property?
2) Can I avail deduction of total principal paid for both the properties (Delhi+Ghaziabad) under section 80C? with a limit of 100000.
3) Can I avail deduction of total interest paid for both the properties (Delhi+Ghaziabad) under section 24? And is there any limit on the interest paid?
4) How the deduction for the interest paid before April 2012 on these 2 properties can be availed & under which head/section this amount can be counted.
Thanks,
Sandeep.
can we club the emi intereste+1/5 th of pre emi intreset both and deduct it from rental income if the house is on rent and claim tax deduction on the resulting amount if it exceeds 150000 also?
Can I not sell the property for 5 years if I claim benefits under section 24 b?
You can sell your property anytime you desire. But If you sell your house before the expiry of 5 yrs, all the money you saved under sec 80C in earlier years will be deemed to be your income in the year of sale and added to your income. For instance, if you bought the flat in 2009 and in next 4 yrs you saved 1 lac in tax under sec 80C, then this 1 lac will be deemed to be your income in the year of sale and will be taxed .
However interest component once saved is saved and it won’t be reversed. Thus, this rule isn’t applicable to the benefits derived u/s.24.
Regards,
Jayesh Deokar
Sir, regarding home loan, is there any limit of time for clamming Income tax rebet? i.e. Upto this much years I can claim Income Tax Rebet and after that period I cant.
There is no such limit for claiming rebate from income tax. As long as you pay your home loan principal and the interest thereon, you can claim the rebate.
Regards,
Jayesh Deokar
Hi,
I have take housing loan from bank of Rs.16 lakhs for constructing 1st floor ..
the house in on the name of my father and mother…but the EMI is getting deducted from my savings account..
Please suggest me how to claim for the income tax exemption for the amount I am paying for housing loan.
Housing loan being in your name and EMI being paid from your account, you can always claim exemption under IT Act under the following two heads-
1. U/s. 24 – Interest on housing loan:-
a. If the property is self occupied, you can claim upto 1.5 Lakh
b. If the property is let out, you can claim any amount paid towards interest. There is no upper limit for claiming exemption in such a case, provided you show rent income against such property.
2. Under chapter VI-A
U/s.80C – Housing loan principal repayment:-
You can claim any amount you have repaid, however, the total amount of deductions u/s.80C are restricted to Rs.1 Lakh. Thus, you cannot claim beyond that.
Regards,
Jayesh Deokar
I have a flat in MiraRoad,Thane where I am staying now and home loan for this is over.
I am planning to buy a new flat in Kolkata thru home loan.
Can I claim only 1.5 lacs rebate under Section(24) or unlimited interest amount ??
If it is only 1.5 lacs – how can I get unlimited interest amount rebate – is it by renting the Kolkata flat ??
Not Exactly!
If you are planning to stay at Kolkata flat, the limit of 1.5 Lakh will apply to it.
But, if you are NOT planning to reside in your future Kolkata flat, you can claim the rebate upto any amount you pay towards interest by application of following rules:-
1. If you let it out for a rent, the annual value of the flat is to be calculated based on the rent earned/fair rent receivable from the property. Annual value, in such case, would be the highest of the Actual Rent Received and Fair/Reasonable Rent. For example, If the actual rent received is Rs. 60,000/- and fair rent/ reasonable rent/ municipal valuation is Rs.72,000/-, the annual value would be Rs. 72,000/- for the purpose of the Income-tax Act.
(Annual value is nothing but the rent earning capacity of the property. The terms “fair rent”, “reasonable rent” and “municipal valuation” are synonyms, which are to be taken to mean the rent prevailing in the area wherein the property is situated.)
2. If it is vacant, Annual value would be Fair/ Reasonable Rent.
3. However, if a property is let and was vacant during any part or whole of the year and due to such vacancy, the rent received is less than the fair rent/ reasonable rent, then such lesser amount shall be the Annual Value. For Example, If the actual rent received is Rs. 50,000/- and fair rent is Rs.72,000/-. Here, if the property was vacant for 2 months in and the rent received i.e. Rs. 50,000/- is for 10 months, then the Annual Value shall be Rs. 50,000/-.
4. Further, you can claim rebate equal to 30% of the annual value towards repairs maintenance etc. would be allowable, irrespective of any expenditure incurred by you.
5. You can also calim rebate of the Municipal taxes actually incurred on the flat.
So the formula would be-
Annual Value xxx
Less: Home loan interest xx
Less: 30% of the Annual vale xx
Less: Municipal taxes paid xx
————————————————————
Income from house property xx
————————————————————
If the above deductions are more than the Annual Value of the property, then the differential amount will be the “Loss on House Propertyâ€, and the same is adjustible against your income from business/ profession/ salary etc.
Hope this serves your purpose!
Regards,
Jayesh Deokar
———————————————————————————————
We make a living by what we get,
what we give however makes the life!!
———————————————————————————————
Hi Jayesh,
Thanks a lot for your reply – really appreciate it.
I am a salaried person.
If I keep the Kolkata flat vacant – How do I establish the Annual Value of the property i.e. what document I need to submit to claim income tax rebate against my salary ??
Please advise.
1. You may produce the documents pertaining to transactions of some other parties in the matter of the other properties in the neighborhood, more or less comparable to your property.
OR
2. The Municipal Corporation of Kolkata will definitely determine Annual Value of your flat for the purposes of charging it with property tax. You may produce the same as a proof of valuation.
OR
3. If your property is subject to the Rent Control Act, the Annual Value of your vacant property will be the maximum rent you could legally recover from your tenant under a Rent Control Act. And in such case, you need not produce any documentory evidence.
You need to furnish all the details pertaining to the “Income/Loss from house property”, if any, to your employer (i.e. person responsible for deduction of taxes from source) in due time, so that he (the employer) will consider the same before deducting TDS from your salary.
Regards,
Jayesh Deokar
I have some queries related to home-loan
(1) In the year that I sell away a house, is the tax relief on home-loan interest available to me? If yes, in case it was self-occupied do I get the full benefit on interest up to 150000 (or is it in any way proportional to the number of months in owned in that FY)?
(2) I have two houses in different cities, A and B. My parents live in A and I live in B. Can I arbitrarily choose to declare “A” as self-occupied and “B” as let out? I understand that I will need to show a “notional annual value” for B in Form 12(c) but the question here is whether it is acceptable norm to arbitrarily choose one of my properties as self-occupied and the rest as let-out?
Hi,
I have couple of questions on availing tax benifit on home loan.
I have a flat and I am paying EMI and claiming one Lakh on principle and 1.5 L on the interest payment.
Now I bought another house for which i have started paying EMI. How can I claim tax benifit on the second house. I am living in the first house and not yet given the second house for rent.
Apreciate your reply on this. Thanks!
Murali..
Dear Sir,
I have taken a loan 50 % on my name and balance on my mother’s name . I have purchased a house by that loan. since beginning i am paying whole EMI through my account.
whether i am eligible to take deduction of principal and interest on both loan or only on my loan.
Ajay
sir,i am govt servant allotted govt quarters rent paid by me, i have own house-housing loan now the quistion is i rebate the housing loan in IT
I Have two flats in Thane . First flat purchased in 2005 . 2nd Flat purchased in 2012 . I am stayng in 2nd house for which interest component is Rs 400000 and interest componont for First flat is R2 45000/- only and it is rented (for a monthly rent of Rs 1000/) . Is it possible for me to show 2nd house as rented and first flat as self occupied so that I can claim enire Rs 400000/- as interest. Pl Guide me
No, it is not.
Sir,
I am a U.P. state govt servant and residing in a government quarter. I’ve taken a home loan to purchased a semi built house, as the house is being constructed by me I am residing in govt quarter. In such condition can I claim the deductions u/s 24 for EMI interest and u/s 80 for EMI principal.
I have purchased a flat in the year 2002 and got i.t. benefits (both principal & interest) and the flat is now lying vacant as my working place is too far from that flat and I have repaid full housing loan. Now I want to purchase another flat near my working place from banks/financial institution. Now I want to know that can I get full i.t. benefits (both principal and interest) as I got like before ?
In case of second house, no deduction is available for principal payment, but it is available for interest repayment.
Dear Sir,
I have a home loan of Rs- 8,00,000.00 (Eight lakes), I am a govt Employee of Assam state, and I am drawing house rent (HRA) with my salary. I live in the same house for which I have borrowed loan and paying EMI for it.
My question , am I eligible for benefits IT of under both the section 80 C & Section 24 ?
i have taken a loan for renewal of my house is the interest paid is eligible for rebate and is there a limit
Renewal of your house? Renovation?
Dear sir,
I have two house in one city.
First home loan over,which i have given on rent.
Second home loan started, where i am staying right now.
Can i claim upto 1.5 lakh or unlited(total) intrest of running loan ?
I am claiming both 80 C and section 24 benefit for my housing loan.. just want to ask can i claim further deduction on account some furniture purchased and renovation of the house? if yes, under which section ?
No, you can’t claim deductions for furniture or renovation.
Dear Sir,
I want to take a home loan to construct a house in a plot which is my father’s name. My father is dependent on me. I am staying ouside in a rented house. Shall I get tax benifit on the Principal of the loan I shall Pay. Shall I get any tax benifit on the interest I shall pay as there is a statement that Tax benifit on interest will be given after possessing the property and I am not going to possess the property.Is it possible to constuct the house in my name(but land is in my father’s mane) and get the tax benifit on interest. In the same time shall I get tax benifit on HRA.
Thanking You.
Dear Ananta, since you won’t be living in the house, the principal is not going to be tax deductible for you.
The interest payment will be available for you to claim tax deduction if the house is in your name. The condition to live in the house is not present to claim interest deduction.
I took loan to buy Plot and construction on the plot. I returned the loan within 2 years and took income tax benefit for 2 year on interest i paid. Now i am buying a flat, i would like to know on how much interest i can get income tax benefit?
I have booked a builder’s flat in April 2010 till date, the construction has NOT been completed / possession not handed over. I had taken housing loan in april 2010. I am paying EMI’s regularly. I am a Govt employee. My Queries are:
1) What exemption can I claim and under which all section {Sec 80 / Sec 24} AND What amount.
2) Is there a rule that Construction MUST be competed in THREE Years, to claim benefits.
AWAITING TO HEAR FROM YOUR END.
Regds,
Amit
We booked a vacant plot on my name and my wife’s name(50:5o share)during the year 2009 forwhich I received SBI home loan Rs 12,00,000.00 on 8.10.2009. We applied for a plan permit and got the approval on 26.12.2011. We started our house construction in the same purchased plot and in the mid of construction, we applied for a home loan for a value of Rs 20,00,000.00.The first installment of home loan of Rs 15,00,000.00 was issued on 10.08.2013 and final installment of loan was issued during the month of April, 2014. The house construction was completed on 3.8.2014. We remitted the following details Interest to SBI.
A) For a loan of Rs 12,00,000.00
i) Pre-construction period interest on the loan amount of Rs
12,00,000 issued on 8.10.2009 are as follows:
8.10.2009 to 31.3.2010 = Rs 45032
01.04.2010 to 31.3.2011 = Rs 91157
01.04.2011 to 31.3.2012 = Rs 90475
01.04.2013 to 31.3.2014 = Rs 96164
—————
Total Amt of Interest = Rs 4,08,732
—————-
ii) Post construction period on the loan amount of Rs
12,00,000 issued on 8.10.2009:-
Projected interest (01.4.2014 to 31.3.2015)
= Rs 89,734
B) For a loan of Rs 20,00,000.00
a)Pre-construction period interest on the loan of Rs 20,00,000.00
issued on 10.8.2013 is as follows:
(10.8.2013 to 31.3.2014) = Rs 1,10,564
b)Post construction period on the loan of Rs 20,00,000.00
issued on 10.8.2013
Projected interest (01.4.2014 to 31.3.2015) =Rs 1,94,900.00
Since the house was not completed within three three years from the date of issue of first loan, I am told that I will be eligible for Rs 30,000.00 only instead of Rs ((50%*4,08,732)/5) +(50%*89,734.00) and the pre-construction and post -construction interest issued on 10.8.2013 for a value of Rs 20,00,000.00 loan can be fully claimed. As the house is self occupied and under such scenario,
My Queries are:
1) What exemption can I claim and under which all section {Sec 80 / Sec 24} and what amount?
2) As the final disbursement of loan falls during the month of April 2014,Is there a rule that construction MUST be competed in THREE Years, to claim tax benefits from the date of first installment of loan? i.e 8.10.2009
3) In order to avail full tax exemption of Rs 2,00,000.00, whether the constructed house is to be self occupied or to be let out.?
3) The construction is started after the first loan and the second home loan is also availed, how the completion date of construction is calculated?i.e from the date of first loan or from the date of 2nd loan?
Kindly advice
Sir
I’ve taken a joint home loan along with my mother for purchasing a constructed house. However, the house is registered in my mother’s name only. I am working at another place in a different state. I am repaying the entire EMI from my salary as my mother is a non-earning member of the family.
Income tax practitioners however said that I cannot claim deductions under sec 24 and 80c as the house in not registered in my name.
My contention is that the either sections, sec2 4 and sec 80C, DOES NOT require that the house so purchased or constructed should be in the name of the assessee. In other words, it doesn’t require that the assessee should be the owner of the house. It just requires that the asseessee should have purchased or constructed the house from borrowed capital.
( A similar case can be cited in sec 54F where the sec doesn’t mention that the investment of the long term capital gain should be in done in the name of the assessee. And Delhi High Court has decided in favour of the assessee where the assessee has invested the long capital gain for purchasing the house in wife’s name only)
( copy of sec 24 follows:
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;
(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 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.)
My query is:
Whether I can claim the relief under sec 24 and sec 80C?
If not, please mention the relevant rule or act of income tax.
Regards.
I’m sorry I’m not sure what will happen in this case.
Hello Sir,
First Home:
I have purchased my first home(Year 2010) at noida, its under construction (Possession 2016), I am paying EMI of 17500.
Second Home:
Last month (Feb-2013), I purchased another flat in noida itself, This is also under construction (Possession 2014), Paying EMI 21000.
I am living in rented flat in noida.
Here my question is :
1. Am i eligible for HRA + Home loan Interest & Principle for any home (If yes then for which one ?).
2. Should i claim tax rebate for both home loan (First home & second home)?
Thanks
Pankaj Gupta
is loan from LIC housing for purchase of plot eligible for section 80C & 24
please advise
Sudhir Bhatnagar
Dear Sir,
I am availing a joint home loan with my wife of Rs. 20 lacs each (Total 40 lacs) for our First Home. As per the Union budget the tax exemption on interest component for first time buyers has been increased to 2.5 lacs for loans below 25 lacs.
So, in our case as the individual loan for each is 20 lacs (less than 25 lacs) for our first home. Will both of us be eligible for tax benefit on interest of 2.5 lacs p.a. ??
I HAVE PURCHASED FLAT IN NAME OF MY WIFE AND TAKEN HOUSING LOAN IN MY NAME IN THE YEAR 2008.
I AM CLAIMING INTEREST DEDUCTION FROM MY INCOME AND ALSO TAKING BENIFIT OF PRINCIPAL AMOUNT U/S 80
SHOULD BENIFIT TAKEN BY ME IS CORRECT OR NOT
Hi all:
I bought a house in 2006 and took a loan to purchase the property. I have been claiming deductions under section 24 and section 80c for the past 6 years. Now i have paid down the loan completely this year. I am planning to buy a new house in the same city that i purchased the first house in in the next fiscal year. The first house remains unoccupied and I am planning to claim the principal and interest (capped at 150,000) for the second house – though it will still be only one home as far as the income tax is concerned.
I wanted to understand if this is technically correct or do i have to show the second home i purchase under the second home and only claim interest net of nominal rent as deductions.
Thank you,
Vinita
As far as I understand the second house works only if you are paying off loan for two houses at the same time.
Thanks Manshu!
So what you are saying that even if I haven’t sold off the first house I bought and am not claiming rent income on it, i can still treat the second home I buy in the same way as the first home as long as I am only claiming interest deductions against it.
Vinita
This comment is not clear to me, I’m not sure I understand what you are saying. What I was trying to say is that based on my understanding I feel that the rule for the second home only works if you have two home loans simultaneously.
Hi Manshu:
Let me try and summarize better.
• In 2006 I bought a house which I declared Self Occupied Property. I took a housing loan to buy it.
• From 2006 to 2013 I claimed tax benefits under section 80C (for Principal of Rs 1 lac) and under section 24 (interest loss upto a maximum of Rs 1.5Lacs per annum).
• In March 2013 I paid down the housing loan and cleared it.
• I am planning to buy one more house in the same city and claim that as a self-occupied property. I aim to get a housing loan to buy it.
My questions are the following.
• Can I claim the same benefits (80C and 24) for the housing loan I am taking to buy this second self-occupied house – based on your inputs above you think I can?
• Will I have to now show nominal income from the first house I had bought in 2006 – even though I have not leased it out?
• Can the IT department force me to either claim the benefits for the house I am planning to buy as a second home by saying it cannot be Self-Occupied Property as I already have one Self Occupied Property in the same city OR Can they force me to declare the first house as a rented property and pay tax against nominal rent income??
Thanks
V
Yes, as far as I know you can claim both benefits without having to do anything additional. I Googled this up and found another link which seems to confirm this. You can read it here and see if you can post any questions there and got more definite answers.
http://www.caclubindia.com/experts/80c-deduction-housing-loan-repayment-27236.asp#.UVTwThdQG8A
salary gross 750000
home loan principal is benifical for deduction from salary calculation
interest paid on housing loan is rs 125000 can it benifical for as 100000lac investment
an other mediclaim ins is benifical for this
sir
salary is rs 750000
housing loan principal rs 25000 pm it is benifical for salary calculation
mediclaim rs 8000
housing loan interest rs 10000 pm it is benificial for salary tds calculation
pl.reply
sir plz write more information of repayment of housing loans.
What type of information are you looking for?
I have a home loan from joint SBI savings account for a joint owner flat. The jointly means myself & my wife. She is a house wife.Now my queries is that what benefit I will get under section 24? Is it total benefit or half of the total interest paid.
what is the meaning of ‘non self-occupied property’ in u/s 24?
Hi,
if the repayment of housing loan has been done by you only, in that case you can claim the whole benefit u/s 24, however you need to produce the proofs for payment has been made by you, and a declaration from joint owner that payment has been made by you, hence she is not claim any benefit for housing loan.
Thanks
Hi,
My father and I have taken a joint home loan for a completed property. This is my first house purchase and my fathers second. My parents are going to occupy this house and my father’s first house will be put on rent. I live in a different city. Please let us know the maximum that we (my father and me separately) will be able to avail under HRA, 80c and 24. And if there are any other implications.
Thanks,
Vivek
Dear Si,
My question for House Loan (Under Construction) principle & Interest (eligible amount or no limit) taken in Tax calculation of Income from Salary & HRA allowance is eligible or not please inform me..
I and my wife have taken up a home loan for an apartment where we are residing right now. The house is in our name 50% each. So we are eligible for IT rebate. I am inquiring about the interest part of the home loan paid till now. The total interest paid is INR 58799 for the last fiscal year. So, both of us are eligible for rebate of INR 29399.5 0 each. Correct?
It says that it can be availed under Section 24 (b). I file my own returns using the income tax department’s website. The excel sheet which I have download from their website does not have Section 24(b) listed. Where should I put this deduction? Please advice. Thanks.
We have availed one housing loan in 4 names. May we avail rebate under sec 24(b) of income tax act
Can I claim exemption under income tax rules even if the construction of the flat is not complete and possession thereof has not been handed over to me?
same query. Did you get to know the treatment ?
Sukhwant,
If the house is under construction you can claim only the interest repayment. But this can be claimed only when the construction gets completed and that too in 5 equal installments. However, these installments will fall within the limit of Rs 1.5 lakh Under section 24.
i am having a joint housing loan with my brother. but the EMI is being fully paid by me and also my brother is not claiming any tax benefit of this housing loan , am i elligle for the full benefit? i no, what is the other option to avail maximum tax benefit. kindly help
Similar query. However, in my case i am having joint housing loan with my father but the EMI is being fully paid by me. My father being a retired person is not claiming any tax benefit of this housing loan. Am i eligible for the full benefit ?? Also, is there any documentary proof i have to submit to Income Tax towards this for getting the full benefit ???
Hi,
I have just bought a properties for 39 lac on a joint loan (loan amt 29 lac) with my husband. The said property is under construction and possession of the same would be around Nov/Dec 2013.
The builder has a scheme of 20:80 which we have availed and the 80% loan would start after possession. I just need your clarification for IT benefit. This is my first property purchased however my husband has one flat already purchased before our marriage.. how can we claim IT benefit for the same… It’s a 50:50 loan. Can I take 1.5 l as interest and him unlimited?
thank you
I am going to purchase a residential plot on my wife name(house wife) and house also to be constructed by taking house loan on my name(Employee) from bank. So it is Ok or plot also purchase on my name only please inform me.
I along with my wife have taken Home Loan jointly more than 25,00,000/- only in the year 2011. At present we are occupying the flat. Both of our names are mentioned in the agreement. We have been paying the EMI in 50:50 ratio. Whether both of us are eligible for availing the income tax benefit of Rs.2,50,000/- each of us on interest as declared in the budget 2013.
This is worth mentioning here that the home loan is our first one.
Is it correct to claim Tax Rebate on Interest on Housing Loan when the construction of the House has not been completed and possession has not been handed over to the claimant?
Dear Mansu,
Your blog required some modification regarding the tax on interest part as below:-
1) 1.5 lacks limit is applicable is house is self occupied and this can not be spread to multiple home loans since if you declare one that one property as self occupied, IT department will consider only one and you will not get ant tax benefit on other.
2) There is not limit on interest for tax benefit on un-occupied property and it can be multiple properties also but only condition is property should be let out.
Hello sir,
I would like to claim interest paid for my home,
1) could you please let me know which ITR form do I need to use ? ITR-1 or ITR-2.
2) If I need to claim it in ITR-1, I see a row “Income from one House Property” (Cell D42), Do I need to enter -ve value here ?
I have interest paid certificate from SBI do I need to send it along with ITR retrun form to Banglore office ?
Thanks In Advance
Pravin
to claim refund under sec24 which ITR should i use
In ITR 1 sec 24 does not appear
Hi All,
We (me & my wife) bought a flat as joint owners. The flat is registered on both our names. We took a loan from LIC Housing finance, my wife is the applicant and I am the co-applicant. The EMI is paid from my savings account (Not a joint account).
Now what is the affect of this on income tax exemptions?
As per section 24B of Income Tax , home loan interest is exempted from tax upto 1.5L. So are we both eligible for 1.5 lakhs each (i.e. combine total of 3L) or we both have to share the exemption to a maximum of 1.5L.
I have searched in internet and found we are individually eligible for 1.5L exemption (total 3L).
I would like to know what is correct. Any one here had similar experience if so what you did?
In my company , the CA is not willing to accept this and saying a maximum exemption limit of 1.5L (we both have to share) is allowed and what I am reading in internet is mere opinions and not the actual law.
Any opinion from you people will be appreciated.
Thanks,
Madhab
Request you to change you CA immediately. The CA is wrong. If you are a joint owners and have paid 300000 as interest , both of you can claim 150000 each.
I know cause I have claimed the same myself and have filed returns on those basis.
Section 24 deductions on interest of principal is always an icing on the cake for people who want additional deductions apart from sec 80c deductions
dear sir,
i have taken a flat in delhi through HUDCO loan and paying the EMI of 13480/- pm & Yearly interest component is Rs 90,000/-. This is being adjusted against my Gross income by misusing it. Now from 1-4-2013 i have rented out this flat at 12000/- pm .
Further in April 2013 I have take a Housing loan from a bank & pm EMI is 40,000/- & Interest Component this year is Rs 400,000/-, through Developer Pre EMI Scheme. Developer is paying me an EMI of Rs 45,000/- pm for two year. This year they shall be paying Rs 5.5 Lakh approx
Plz clarify
1. My gross salary shall have deductions of my HUDCO Interest portion (Rs 90,000/-) + Deduction of 2nd Loan Interest component(Rs 4 Lakh) or not?
2. whether the Pre EMI paid by developer i.e 45,000/- pm shall be added up in my Gross along with the Rent of my 1st Flat?
Kindly help me and clarify urgently
sir please tell me that am i eligible to take income tax benefit if i have taken home loan to construct house but the plot is my father’s name only and he does not take any tax benefit and loan is given against my salary and repayment is done by me only.. please reply
Rajendra,
To avail the tax benefit on housing loan you need to have certain amount of ownership in the property. If its in your father’s name bank will give you the loan but income tax will not allow you to claim the tax benefit.
Sir,
I am a lady .I have bought second home under housing loan .I it is not rented Iam paying EMI for both homes.How should I calculate the tax exemption regarding it
Beula,
If you have two house one will be treated as self occupied and the other as let out.On the self occupied house you will be able to claim upto Rs 1.5 lakh interest repayment and Rs 1 lakh for 80C. But on second house the exemption will be available for the entire interest repayment.
Take the help of a qualified CA to do the calculations.
Sir,
I am a lady .I have bought second home under housing loan . It is not rented Iam paying EMI for both homes.How should I calculate the tax exemption regarding it
Hi
I took a home loan jointly with my Father. I am the co-borrower & my father is the borrower. I am the one who is paying monthly EMI from my salary. Our employer is requesting for Co-borrower share in the property i.e; name has to be mentioned in the agreement with the shares. But my name is no where cited in the agreement. How do I need to claim for my tax ememption under 80C? If I give the self declaration then it would suffice.. Please confirm
Regards
karthik
9900014571
Me and my wife owned a flat for which we have taken a home loan amt. 1975000/- with EMI-22969/- PM
Can we both take tax benefit for the intrest and principle amount?
Is it necessary that the EMI should be deducted from boths accounts?
Pradeep,
For banks you have to give them a single cheque. But for income tax claim the bifurcation is must. In a joint loan you can claim the tax benefit in the share of the loan borrowed by each. An ideal solution is to repay from a joint account and have a written document mentioning the bifurcation clearly. You can get this done as an agreement. Through this process you both will be able to claim the tax benefit for your share.
written document mentioning the bifurcation clearly- Sir please elaborate this line more.
Myself and my younger son have taken a joint HL from SBI for Rs.25 Lacs. and the flat is in our joint names. The possession of the flat has been taken on 01 11 2013. But the same has not been occupied so far due to some furnishing work which is under progress. I was staying in a rented house from 1 04 2013 till 31 10 2014 paying monthly rent @Rs.15000/-. I am staying with my elder son from 01 11 2013 and not paying him any rent. My share of HL interest liability works out to be about Rs. one lac.
Please let me know whether my employer will pass on the HRA benefit on the basis of rent paid receipts from 01 04 2013 to 31 10 2013 and also recokn deduction of Rs.1 lac of my share of HL interest payable to the bank, while calculating Income Tax Liability.
PSNayak,
HRA benefit and Interest Deduction, both can be claimed.
what effect if two house & interest 4,00,000rs.
1st for self occupied
2nd for rent
I believe you are wrong in stating that only a total of 150000 can be claimed if you have multiple houses and have multiple housing loans.
As for Section 24 deduction, on your self occupied house you can take advantage of interest payments up to Rs.1,50,000. For the other property, you can claim actual interest repaid, there is no limit for the same. In some places it is mentioned as a max of 250000.
Request you to check the same and come back with the correct information.
Hi,
The property is in my mom’s name and she applied for a house loan and I am the guarantor for the loan. But I am the one who is repaying the EMI.
Please let me know whether i can get tax exemption for this.
PS: I am having one younger brother and one younger sister.
Gayu,
You cannot avail the tax exemption. For claiming any exemption you need to have an ownership in the property.
Is there something like providing power of attorney of the property is possible now to avail the tax exemption eventhough it is owned by my mother?
Gayu,
Housing Loan tax exemption cannot be availed on power of attorney. You need to have an ownership in the property. Gifting a share in teh property can be one viable option but it will involve certain cost such as stamp duty etc..Much also depends on your bank from where you have taken the loan.Take assistance from a tax expert.
I my wife and my son has taken jointly home loan and paying 4.5 lakhs per year (Interest 2.5 & principle 2 lakhs) can we all use the entire repayment dividing equally or according to our requirement
Ratnakuamr,
The home loan benefit can be availed in the ratio of the housing loan availed. However, you will have to prove the repayment which can be done if its done from a joint account. Else only the account holder from whose account EMI is deducted will be able to avail the tax benefit.
Where to mention the interest paid on Home loan in ITR-1 online form.
I and my mother jointly name of property what so I got tax benefit
Anil,
Yes you get the tax benefit if you have even part ownership in it.
Hi,
how much income rebate I can get under section 24B , if builder delay the construction by more than 3 yrs. For example I take loan in April 2003 and start paying EMI from April 2003 itself, but flat is not in my possession till May 2008. so for FY 2008-09 how much rebate I can get.
Rajesh,
Till the house is under construction you cannot claim any tax rebate. Once it is completed then you can claim the total interest you have paid during underconstruction in 5 equal installments. But this exemption will be within limit of Rs 2 lakh (As per budget provision) under sec 24B.
I and my wife have purchased a flat through Bank Loan. The flat is registered in my wife’s name. But the loan has been taken jointly.My wife is now a housewife and I am paying EMIs. Can I claim tax exemption as my office is denying informing me that the house is not registered in my name.
Avinash,
Yes. To claim tax benefit on housing loan you need to have some ownership in the property.
But you need to check this with a qualified tax expert as in other provisions like capital gains exemptions are provided if the new house on which claim is seeked is purchased in the name of spouse.
Bought Home in Noida in CLP plan on 2010 & taken home
loan on 23-10-2010. Closed home loan account on 2013.
Didn’t took any home loan benefit before.
Builder has given possession certificate of 25th March 2014
My question :
Q1. Can I avail the home loan benefit (only interest part) from 2010-2014 which is equal to 1.45 lakh. If i sum up all years interest. If yes can i take it in one shot in this AY 2014-15 or can i claim the intrest only for this year or for this yr + 20% of remaning amount .
My Calculation
Total Intrest = 152424 (from 2010-2014)
-36443 (intrest for 2013-2014)
==========
113557 *20% = 22711 (20% of total remaing amount)
For AY 2014-15 can i claim ? 36443+22711 = 59154 in ITR1 ?
Q2. I guess i have to fill ITR1 in this case as i have only 1 house. By putting -ve value in self occupied property … ?
Thanks.
Amit,
Yes you can claim it but in 5 equal installments in next 5 years starting from FY 2014.
Hi,
I have paid Rs. 3,00000/- to the builder as a down payment of my flat.
Please let me know where can I put this amount in Income tax return form?
Note: My EMI is not started yet.
Jayesh,
You get exemption on the home loan not on the funds you have sourced unless it is coming from capital gains. Also even if it is a home loan you get exemption on the Interest you repay after the completion of your house.
i took a self employed professional loan from hdfc bank. using this loan i constructed a residential property over a land that is owned by my father and uncles. can i claim tax benefit under section 24.
Vikas,
There is no exemption on self employed professional loan for construction of house.
Hello,
I have bought a plot on loan (purchase of plot loan from Indiabulls) in May 2014 but I have not constructed house on this plot yet. Hence without constructing house on plot, can I claim Tax exemption on Principal + Interest paid for plot loan repayment? .
Rakesh,
There is no exemption on loan taken for a plot.
Sir ,
My brother in Law is an army officer . He has paid 1.40 lac pre EMI interest during 2006-2008 for house hegot from Army Welfare Housing Organisation . He got the certificate of this payment in April2014 . His parents are living the house as he is posted on LOC in Kashmir. Can he claim this amount in five instalments along with the regular interest he is paying subject to max limit of 1.50 lakh and in coming 4 years . He got the possesion of House in 2010 but this certificate recently . I think he has to use ITR1 to file his return .Can you guide him that where he will put up this deduction in ITR form 1 .
thanks
Ajay,
Yes you do get tax benefit on pre-EMI. It is the interest component and can be claimed similar to the housing loan interest within limit of Rs 1.5 lakh. So show it in under income from house property. If you are not aware take assistance of CA for filing your ITR.
I m having 2 different houses. One is constructed n I m living in the same house. It is almost 8 years passed n I m paying loan installments per month. 2 years back I had booked another flat which is still under construction n only 2 floors are ready out of 15 floors. But as slab wise payment terms I had to go for loan and till date I have paid 10% of the total amount through bank n my monthly emi has also started. In future I will have to pay amount as per floor completion through bank n accordingly my monthly emi amount will get increased.
My question is now that shall I declare both houses principle n interest amount under 80c as tax benefit to me. I m paying approx 2.5 lacs emi amount per year for both the houses.point is my second house is still under construction but I m paying emi per month n bank will be provide me statement for receive of this amount. Pls clarify.
Satish,
You do not get any tax exemption on principal amount for under construction property. You can only claim the interest paid that too after the completion of the house in next five years in five equal installments.
We booked a vacant plot on my name and my wife’s name(50:5o share)during the year 2009 forwhich I received SBI home loan Rs 12,00,000.00 on 8.10.2009. We applied for a plan permit and got the approval on 26.12.2011. We started our house construction in the same purchased plot and in the mid of construction, we applied for a home loan for a value of Rs 20,00,000.00.The first installment of home loan of Rs 15,00,000.00 was issued on 10.08.2013 and final installment of loan was issued during the month of April, 2014. The house construction was completed on 3.8.2014. We remitted the following details of Interest to SBI.
A) For a loan of Rs 12,00,000.00 (Date of Issue: 8.10.2009)
i) Pre-construction period interest
8.10.2009 to 31.3.2010 = Rs 45032
01.04.2010 to 31.3.2011 = Rs 91157
01.04.2011 to 31.3.2012 = Rs 90475
01.04.2013 to 31.3.2014 = Rs 96164
—————
Total Amt of Interest = Rs 4,08,732
—————-
ii) Post construction period interest
Projected interest (01.4.2014 to 31.3.2015) = Rs 89,734
B) For a loan of Rs 20,00,000.00 (Date of Issue: 10.8.2013)
i) Pre-construction period interest:
(10.8.2013 to 31.3.2014) = Rs 1,10,564.00
ii) Post construction period interest
Projected interest (01.4.2014 to 31.3.2015) =Rs 1,94,900.00
Since the house was not completed within three years from the date of issue of first loan( i.e. 8.10.2009), Whether
(i) I am eligible for a tax rebate of Rs ((50%*4,08,732)/5) +(50%*89,734.00) on the Rs 12,00,000 loan and
(ii) the pre-construction and post -construction interest on the second loan of Rs 20,00,000.00(issued on 10.8.2013) for a value of Rs ((50%*1,10,564)/5) +(50%*1,94,900.00) loan can be fully claimed.
Our house is self occupied. Under such scenario,
Our Queries are:
1) What exemption can we claim individually and under which all section {Sec 80 / Sec 24} and what amount?
2) As the final disbursement of loan falls during the month of April 2014,Is there a rule that construction MUST be competed in THREE Years, to claim full tax benefits from the date of first installment of loan? i.e (8.10.2009)
3) In order to avail full tax exemption of Rs 2,00,000.00, whether the constructed house is to be self occupied or to be let out.?
3) The construction is started after the first loan and the second home loan is also availed, how the completion date of construction is calculated? i.e from the date of first loan or from the date of 2nd loan?
Kindly advice.
KINDLY THAT THE DATE OF COMPLETION OF HOUSE IS 8TH MARCH,2014. SORRY FOR THE WRONG ENTRY AS 3.8.2014
We are Govt. Servants,booked a vacant plot on my name and my wife’s name(50:5o share)during the year 2009 forwhich I received SBI home loan Rs 12,00,000.00 on 8.10.2009. We applied for a plan permit and got the approval on 26.12.2011. We started our house construction in the same purchased plot and in the mid of construction, we applied for a home loan for a value of Rs 20,00,000.00.The first installment of home loan of Rs 15,00,000.00 was issued on 10.08.2013 and final installment of loan was issued during the month of April, 2014. The house construction was completed on 8.3.2014. We remitted the following details of Interest to SBI.
A) For a loan of Rs 12,00,000.00 (Date of Issue: 8.10.2009)
i) Pre-construction period interest
8.10.2009 to 31.3.2010 = Rs 45032
01.04.2010 to 31.3.2011 = Rs 91157
01.04.2011 to 31.3.2012 = Rs 90475
01.04.2013 to 31.3.2014 = Rs 96164
—————
Total Amt of Interest = Rs 4,08,732
—————-
ii) Post construction period interest
Projected interest (01.4.2014 to 31.3.2015) = Rs 89,734
B) For a loan of Rs 20,00,000.00 (Date of Issue: 10.8.2013)
i) Pre-construction period interest:
(10.8.2013 to 31.3.2014) = Rs 1,10,564.00
ii) Post construction period interest
Projected interest (01.4.2014 to 31.3.2015) =Rs 1,94,900.00
Since the house was not completed within three years from the date of issue of first loan( i.e. 8.10.2009), whether
(i) I am eligible for tax rebate on the interest component of Rs ((50%*4,08,732)/5) +(50%*89,734.00) on the Rs 12,00,000 loan and
(ii) the pre-construction and post -construction interest on the second loan of Rs 20,00,000.00(issued on 10.8.2013) for a value of Rs ((50%*1,10,564)/5) +(50%*1,94,900.00) loan can be fully claimed.
Our house is self occupied. Under such scenario,
Our Queries are:
1) What exemption can we claim individually and under which all section {Sec 80 / Sec 24} and what amount?
2) As the final disbursement of loan falls during the month of April 2014,Is there a rule that construction MUST be competed in THREE Years, to claim full tax benefits from the date of first installment of loan? i.e (8.10.2009)
3) In order to avail full tax exemption of Rs 2,00,000.00, whether the constructed house is to be self occupied or to be let out.?
3) The construction is started after the first loan and the second home loan is also availed, how the completion date of construction is calculated? i.e from the date of first loan or from the date of 2nd loan?
Kindly advice.
Renganathan K.
1. In under construction property the interest you repay during the construction period can only be claimed in 5 equal installments in 5 years from the date of completion of house. You do not get any exemption on the principal you would have repaid in the construction period.
2. Yes there is a clause in income tax that the construction of house should get completed in three years. In case if get delayed beyond this period than the exemption on interest you can claim is reduced to Rs 30000.
3. The completion date will be calculated from the first loan but need to get completed within three years irrespective of any future loan you avail on the property.
I hope this answers your query to an extent. Its wiser to seek advice from a good tax expert before you claim for the exemption.
Hello,
Have closed my home loan for first house and now in process of buying second home. Would like to know if I can claim unlimited tax benefits on home loan interest? Is it mandatory to have tow home loans running to get this tax exemption? Or tow owned home with one home loan closed and other home loan running is enough?
Please guide.
Cheers!
Ajit,
Unlimited interest deduction in housing loan is for the second loan when the first housing loan is running.
I have taken a loan of rs. 340000/ from my employer.My employer add Rs. 9000/- as perquisite in my income for the subsidy of less intt. charged.
My deduction for intt u/s 24 is Rs 10000/-
Principal 80 c-9500-
Can perquisite of Rs.9000/- can also be added in section 24. \
Please reply and if yes under which section.
Sanjay,
Sec 24 includes specifically the interest you repay on housing loan. Perquisites by your employer cannot be included in this section.
Hi,
Can you please guide me on tax exemption on second property costing more than INR 50 Lakhs where loan amount is INR 40 Lakhs? My first property is self occupied and free from any loan.
Amol,
You will get tax deduction as per sec 24. You can claim upto Rs 2 lakh on interest and Rs 1 lakh on principal in this financial year.
one property cost is 55 lakhs and for purchasing in the same property I wants to take a Home loan of Rs. 40 Lakhs now the bank is diducting Rs. 55 000/- as income tax for give loan of Rs. 40 lakhs. is it right or wrong.
Randhir,
There is no income tax on loan. Kindly check again what is being deducted…
Dear Sir,
I have a question on income tax rebate on home loan.
We have purchased a house and the same is in my and my mother’s name.
I have taken a loan of 35L and is being totally repaid by me thru a joint account in the same bank. My mother do not avail any tax benefit on this though she has some income thru shares and also files ITR.My question is , can I avail the full benefit of income tax and the share will be divided between me and my mother.
Please note she has nothing do to with the loan amount and entire EMI is being borne by me.
Hi,
I have taken a home loan for a flat. I got the possession of the flat in August 2014. However, the builder has not issued Possession Letter yet. I have to submit documents to my company to claim benefit of Interest paid on the loan. I want to know, whether Possession Letter is required to claim Interest on the loan.
The builder’s argument is ‘the date of possession is specified in the sales deed. Hence, it does not require separate Possession Letter to be issued’.
Kindly let me know what can be done in this situation. Is there any other document that can be provided to claim Interest on the loan?
Sir
I want to sell my current house after buying the new house.I then want to repay the home loan of the new house by the money I get from selling the old House.
1.What is the max. time in which I can sell my old house after buying the new house ,so that I get IT rebates?
2.Which is the best thing for me to do in the above case?
Regards
Prabhat Sinha
I am a school teacher and have house building loan. I have no income from other sources. Which form I will fill up for income tax return for the assessment yr 14-15?
Sir, I have completed my house loan & now i am planning to take a flat in other city….can i will get income tax benefits or not.
Here is my situation.
The flat I own was previously owned by my Blood Brother. He got the flat transferred to me as gift, but the loan still remains under his name. We had a mutual agreement that I will pay the EMI, hence on a monthly basis I pay my brother, and eventually the EMI gets debited from my brothers account.
My brother is not claiming this for tax benefit as the money at the end is paid by me. I want to know if I can claim this for Tax, since I am paying the loan indirectly. Please advise.
Your brother can relinquish part of the property by Registering the deed. You can legally claim exemptions.
Vijay
Hii,
sir, I have taken housing loan as on 15th June 2013 and my property was in underconstruction till September 13 (possession date- 10/09/13) so what is the taxability for preconstruction interest from june to sept for f.y 13-14 ?
purchased 2 (small) flats @12,50,000/-each in june 2012 with home loan of 10,00,000/- each. claimed 80C(principal, stamp duty) and section 24(interest) for both as self occupied and deem-let-out during last 2 years.
Again purchased a (large) flat @35,00,000/- in july 2014 with home loan of 26,00,000/-; but before that i have fully repaid and closed earlier 2 home loans (then only got new loan).
Then, sold 1 (small) flat @15,50,000/- in Dec.2014; and panning to sale another (small) flat.
(To save extra capital gain tax, wish to sale second small flat only after March 2015; is it OK?).
Pl suggest how to calculate capital gain(STCG)??? Also, tax calculation regarding reversal of 80C and/or 24 (principal, stamp duty and interest).
Nice and informative article. Keep up the good work in financial literacy.
Now with 2 lakhs deduction under section 24, it will be attractive for many home buyers. Hope of a reduction interest rate from this year also can revive the real estate sector.
Sir,
I had acquired a fully finished house from the state housing authority for which i took a loan (2009) from my office (Central Gov) and have been claiming the interest on accrual basis. Now, i am planning to construct the second floor of the house for renting for which i have to take second loan from bank.
can i get rebate of interest amounting Rs. 200000/ in aggregate on both loans ?
further i have to state that i did not claim the deduction of principal on the first loan and i am presently residing in the Govt accommodation and my house is unoccupied.
please advise.
I was allotted residential plot secret 3 greater NOIDA in the year2009 and payment made by taking housing loan from llichf and paying EMIs regularly. The possession of the plot has not been handed over due to dispute farmers with Gnoida authority. Now I want to claim tax rebate on salary account Delhi police but ddo has refused to give benefit. Is I entitled. Pl intimate.
Hi,
I Have purchased home and gifted that home to my brother.. But remaining EMI amount my brother given to me on monthly basis. EMI is still my bank account only. I would like to purchase another House. Whether I am eligible for taking a home loan again?
One of my clients is selling his flat; he has an allotment letter of this flat from the developer dated in Sep 2011, the house was under construction and so his sale deed was executed in July 2012. Kindly help us that which date will be applicable for considering long term capital gains, will it be from the date of allotment letter or from the date of sale deed?
I have taken the home loan from LIC housing finance where the land is in name my father. I used to honor the EMI to bank from salary account where my father is not claiming the any benefit from Section 24B Income Tax Benefit of a Housing Loan. In circumstance I can avail this tax benefit under Section 24B Income Tax Benefit of a Housing Loan.
Looking forward for your reply as earliest possible.
Regards
Manish Singh
08588813792
Sir I have purchased a flat on my wife name and paying emi of lone from my salary can I get tax benefit
Dear Sir,
with reference to housing loan interest & principal amount .
i have taken loan from bank in which first name of my wife & second name is my name. and all HOU.loan EMI deduction from my salary can i claim both principal & interest against my income.please answer.If any specific propotionate certificate is required or not.
I have taken loan from bank in which first borrower name is my self and co borrower is my wife and all HOU.loan EMI deduction from my salary can i claim both principal & interest against my income.please answer.
Dear Mukesh
You can claim principal repayment upto Rs. 150,000 u/s 80C
And interest deduction u/s 24 b upto Rs. 200,000 is your house is self occupied.
Dear Manish Shah
You can claim interest and priencipal repayment only if the ownership is on your name severally or jointly.
I am seeking a clarification to a query that remains unresolved till date. If the home loan was disbursed to me in two instalments in two successive years how am I calculate the period of three years for claiming the benefit of 1.5 lakh deduction i.e. from the end of the financial year in which the last instalment was given or the first?
Dear sir,
This is first time i am taking home loan. what are the documents required to show in income tax declariation.
and another one i am the Borrower and my brother is co-borrower how i can show this?
please clarify i am fresh in this………
sir,
i am a government employee. I have purchased a house in the name of my wife. But i am re paying the loan. Can i claim the exemption for income tax for interest paid on housing loan?
I would like to know why ITR 1 meant for e-filing doesn’t include section 24 under deductions? Is there any way of filing gross income from rented house property and deductions under section 24 clearly reflected on the IT document?
Sir,
I have taken personal loan for the purpose of house repair.Can i claim the rebate for the interest amount paid under section 24(b)
Interest paid on Home Loan Top Up . Is rebate available under section 24 ?
Sir,
I have purchased 1 flat from greater noida authority as per their emi scheme in this I am paying principle+interest as a emi to authority so now query is that can I take income tax benefit of home loan under section 80c and 24B. Please guide me on this..
Timely blog post – I learned a lot from the points . Does someone know where I might obtain a sample a form form to use ?
Can I Claim the Housing Loan Interest U/s 24 B due to Only Interest Debited During the FY 2015-16 Rs, 99035/- But Amount Paid towards the principal and Interest Rs. NIL.
Hi,
I have opted for SBI Max Gain. My question –
1. Whether i am eligible for Section 24: Income Tax Benefit on Interest on Home Loan ?
The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs .
Currently the property is in Under Construction stage.
2. Tax certificate provided by SBI comprises of what all details ?
Kindly suggest what all options are available to me for getting the Tax exemptions ? I have recently bought the first home, loan amount 24 Lakhs, property price-34 lakhs.
Hi
I have opted for SBI Max Gain. My question –
1. Whether i am eligible for Section 24: Income Tax Benefit on Interest on Home Loan ?
The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs .
Currently the property is in Under Construction stage.
2. Tax certificate provided by SBI comprises of what all details ?
Kindly suggest what all options are available to me for getting the Tax exemptions ? I have recently bought the first home, loan amount 24 Lakhs, property price-34 lakhs.
I have taken a housing loan. There is deduction of Rs.210000 (80C) towards principal in the year. Rs.240000 is allowed accrual interest for the year. My taxable income is Rs.45000. Can I claim Rs.48000 as accrual interest in the current year and remaining claim of accrual interest will intact.
Hi, I have availed a home loan under my name but purchased property under My Mom. Can someone plz tell me if i can avail tax benefit, if yes then how. Thanks
Dear Sir
I have jointly purchase the flat at Kolkatta. First Name is Mrs. Mahuya Mukherjee & 2nd name is Gautam Mukhopadhyay.
My question is Can I get tax benefit from Hoam Loan
I waiting for your reply.
Sir,
I want to know the calculation of perquisite . If value of perquisite is added to the income , then whether we can deduct the value of tax paid on this perquisitite as loss to the income. Specially , in case of housing loan where concessional rate of interest is provided
Sir, My first flat is SOP & it is debt free. I have borrowed loan for my second flat Rs, 17,00,000 in Jun 2016. Currently it is under construction. Expected possession is in March 2018, however it may get delayed. How much deduction can I consider now for FY 2017-18 for principal & interest component ?
My employer had not considered interest & principal amount in FY 2016-17 which I had paid till March 2017. Can I claim it now while filing return in Jun 2017 ?
Very nice article manshu. Well, Section 24 is also beneficial with the help of HUF. Where we can claim section 24 deduction for interest on housing loan for Rs.2,00,000 (Self Occupied Property) and for any amount.
Hi, Great Article. I am prospective borrower and was wondering what informations does an online EMI calculator provide? https://www.loankuber.com/content/emi-calculator/faqs-emi-calculator/
Sir I have taken home loan from sbi and I have increases emi from rs.10697 to rs.17000 from feb 2016. But sbi not showing increased emi in principle amount. 17000-10697=6303 for claiming income tax .what I can do in this case..is there any instructions or circular to show the bank..under which section should I claim principles amount ..pl help
I have purchased a flat in my wife’s name. I am joint applicant in loan for the flat. Can I get tax benefit on principal and interest paid towards loan?
In 2012, I took a housing loan of 12 lacs to fund the purchase of an under-construction flat and loan was completed in 2015. construction of flat was completed in 2018 & possession of flat is given in may 2018. I haven’t claimed any tax benefit so far. What happens to the loan installments I have paid so far? Can they also be claimed for tax benefit?