To understand the key tax benefits on a home loan, we are bifurcating the repayment techniques into four major elements-tax benefits on principal repaid, tax benefits on interest paid, deduction on pre-construction interest, and section 80EE income tax benefits. The next section will let you know the concept in detail.
Tax Benefits on Principal Repaid
Under section 80C of the Income Tax Act, the maximum deduction allowed for the repayment of the principal amount of a home loan is Rs. 1.5 lakh. Deduction under section 80C also includes investments done in the PPF Account, Equity Oriented Mutual funds, Tax Saving Fixed Deposits, National Savings Certificate, etc. subject to a maximum of Rs. 1.5 lakhs.
Besides this, there are stamp duty and registration charges that one can claim under the aforementioned section. However, the claim can only take place in the year in which the payment was made.
Nevertheless, there’s a condition under which this repayment of the principal amount of the housing loan is allowed. The deduction is only possible after the house gets entirely completed and there is a completion certificate for the same. The principal amount paid on any under-construction structure/property is not going to be a part of this section.
Tax Benefits on Interest Paid
Under section 24 of the Income Tax Act, one can avail of the deduction on a Home Loan for payment of Interest tax benefits. The self-occupied property allows the deduction with a maximum limit of Rs. 2 lakh if it takes completed within 5 years from the end of the Financial Year, otherwise, the maximum limit is Rs. 30,000.
Interest on housing loans paid for the let-out property is fully allowed in the relevant assessment year in which it is claimed.
From Assessment year 2018-19, the loss from house property head that will be allowed to be set off from other heads of income will be restricted to Rs 2,00,000 in a particular assessment year, and the rest amount shall be carried forward for set-off in subsequent years.
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Read Also: Tips to Save Income Tax in India
Tax Deduction on Pre-construction Interest
You can also claim interest on a housing loan paid before the completion of the construction of the property. It is termed pre-construction interest. It is allowed in 5 equal instalments beginning from the financial year in which the construction is completed. The limit of 2 lacs will also apply for pre-construction interest in the case of self-occupied property. However, it is fully allowed in case we let our property.
Section 80EE Income Tax Benefit
Section 80EE proposes an additional deduction of Rs 50000 in respect of interest on housing loans to first-time house owners who own a house of Rs 50 lakh or less and have taken a home loan amount of less than or equal to Rs 35 lakh. The loan should be sanctioned between April 1, 2016, and March 31, 2017, to claim a deduction under this section. This deduction shall be in addition to the interest allowed under section 24(b) of the Income Tax Act, 1961.
Deductions Claimed by Individuals Under Section 80EEA
As mentioned under the newly inserted section 80EEA of the Income Tax Act, the government has extended the limit of deduction up to Rs. 1,50,000 applicable to the interest paid by any individual on the loan against residential property.
As per the policies, the deduction is available for individual residents only and for the property having a stamp value of less than Rs. 45 Lakhs.
Also, the loan needs to be sanctioned between 1 April 2019 to 31 March 2022, and the individual should not own any other residential property at the date of sanctioning the loan. Lastly, the person should not be eligible for claiming any deduction U/S 80EE.
Joint Home Loan Deduction
In case the home loan is taken jointly, then the loan borrowers are eligible to claim a deduction of up to 2 lakh each for the home loan interest and principal repayment u/s up to INR 1.5 lakh each in the tax return individually. They all must be co-owners of the property and further it helps in the larger tax claim benefits if in the family itself.
| Deductions | Section | Maximum Deduction (INR) | Conditions |
|---|---|---|---|
| Principal | 80c | 1.5 Lakh | No sale of property within 5 years |
| Interest | 24b | 2 Lakh | The loan has to be taken for construction and has to be completed within 5 years |
| Interest | 80EE | 50,000 Thousand | The loan amount must be under 35 lakhs , and the property value under 50 lakhs |
| Stamp Duty | 80C | 1.5 Lakh | Availed only in the year of expense |
| Interest | 80EEA | 1.5 Lakh | The stamp value of the property is under INR 45 lakh. Taxpayers are not eligible to claim a deduction under section 80EE |
However, in the new tax regime, deduction is not allowed under sections 24(b), 80C, 80EE and 80EEA.
Hello Sir. My query is for LTCG tax exemption for home. Suppose I’m availing of a loan to buy a new property which will be available for possession within 6 months. When I get possession of property after that I will sell the current home(in which I’m residing). I will use that sale amount to payoff the loan for my new property. Will I be allowed for exemption from LTCG tax for sale of my current home ? As I will be using it to repay home loan only which was used for acquiring a property. Since I will get possession after 6 months only, that is why I have to avail of home loan in order to make payments
“As per section 54 seller should purchase a residential house either 1 year before the date of sale/transfer or 2 years after the date of sale/transfer or construct the residential house within 3 years from the date of sale/transfer then seller can avail tax exemptions from Capital Gains.”
Hi,
I was having home loan which I have fully paid in FY 2023-2024. However the home loan interest paid in previous years before closure was always more than the tax benefit amount of Rs 2 lac.
For eg. in FY 2023-2024 the total interest paid was Rs. 5 Lac. where as I have claimed tax benefit of Rs. 2 Lac (max allowed as per IT). Thus the remaining amount of interest paid is Rs. 3 Lac.
Can I now claim the tax benefit of Rs. 2 Lac again from this previous year interest paid remaining amount of Rs. 3 Lac for the next FY Year i.e. 2024 – 2025 or even the remaining amount of interest for previous years like 2022-2023, 2021-2022 et.
If yes, what is the number of previous years from which I can claim this kind of tax benefit and till what time?
Thanks.
Sundeep
The deduction of INR 2 lakh is allowed for self-occupied property, and the entire interest is deductible for let out property & unabsorbed loss shall have to be carried forward for set off against house property income in next eight years in case of let out property.
hi sir
is the interest on the home loan of the let out property can completely claimed under 24 b, .i.e more then 2 lakhs
or only while calculating the income from the home loan
Under section 24b deduction can claim up to 200000. Section 80EE allows income tax benefits on the interest portion of the residential house property loan availed from any financial institution. As per Section 80EE, you can claim a deduction of up to Rs. 50,000 per financial year in addition to 24b.
Hi,
Kindly see the following scenario:
Husband and Wife purchased flat jointly in their name and house loan is also in joint name. But only husband earns and pays the EMI from his salaried account. Wife is a homemaker and do not earn. Total interest on home loan this FY is 360000/-. Can husband claim 200000/- u/s 24b or he can claim only 180000/- . Wife is not earning and hence dont want to claim any rebate.
Kindly share the supporting documents also.
IF HOME LOAN PRINCIPLE AMOUNT 150000 & INTEREST IS 200000 THEN HOW THE COUPLE CLAIM THE HOME LOAN BENIFIT?
Home loan principle amount can claim in section 80C And interest rebate can take under section 24 (b).
dear I have two home loan, 1st taken on 2018 and 2nd taken Sep2019
so 1st loan(interest 1.5lacs) cailmed as self occupy in 24B and 2nd loan (interest 1.5lacs) how to claimed for 80EEA as…. ?
“Following condition should be satisfy for claiming exemption under section 80EEA –
Housing loan must be taken from a financial institution or a housing finance company for buying a residential house property.
The loan should be sanctioned during the period 1st April 2019 and 31st March 2022.
Stamp duty value of the house property should be Rs. 45 lakh or less.
The taxpayer should be a first-time home buyer. The taxpayer should not own any residential house property as of the date of sanction of the loan.
To claim the deduction under section 80EEA, ascertain the total interest portion during the year and claim a deduction of Rs.2 lakh under section 24(b). If the limit is exhausted, you can claim further deduction under section 80EEA up to Rs.1.5 lakh, subject to all other conditions for eligibility being satisfied.”
house property both less Rs. 45 lakh
but last i filled income tax return for 2nd load but 80EEA option got hide and 80EE option visible , why this heppend…..?
“Section 80EEA of the Income Tax Act, 1961, provides an additional deduction on home loan interest for first-time homebuyers of affordable housing. The deduction is available to individuals who are first-time homebuyers.”
MEDICAL TREATMENT OF HANDICAPPED DEPENDANTS U/S 80DD
Artificial leg (80% disability)change every year my son how can apply that
Hi,
Thanks for your wonderful article. I am trying to complete my ITR-2 and have a query.
For my Self occipied home , the home loan interest is much more than 2 Lakh, I am aware that I can get 2 Lakh deduction for this.
My question is where and how do I enter into the ITR-2 , so that the remaining house property loss , i.e. total home loan interest paid minus 2 Lakh, is carried forward for next years?
Kindly explain.
Only Loss in let out property is allowed for carry forward. In case of self occupied is no Loss is allowed to be carry forward.
Thanks for the quick revert.
Could you please point out to the IT act reference explaining this?
In IT Topup home loan interest considered or not
SIR,
I HAVE GET GROSS RENT FROM MY PROPERTY 6,00,000.00 AND I HAVE PAID HOME LOAN INTEREST 5,31,253.00. SO THAT HOW MUCH INTEREST TAKE IN SECTION 24 IN IT
In sec 24 A standard deduction Of 30% of annual rent value allowed after That In 24 B for let out house property full of amount of interest is allowed
Sir, I did not find any condition for claiming deduction u/s 80C and u/s 24(b) that the property should not be transferred within 5 years or Completion should be made within 5 years. Kindly give me a reference where these conditions are stated.
Thank you.
Please refer to Section 24 (b) of Income Tax Act 1961
Dear Sir, I have purchased land and constructed house in 1260sqft. Loan sanctioned on 18-03-2022. The plot+construction value is 42lakhs. I paid interest in fy22-23 approx 162000/- but not claimed during ay23-24 itr3 form due to the house possession was given in Mar-2023. I have the let out the property and receiving 5200/- rent. Fy23-24 i will be paying 261000 interest. Can i claim overall interest (261000+(162000/5)) 293400/- under section 24b along with additional benefit of 150000/- under section 80EEA? I am unable to see section 24b in ITR3 form. I will show rental income as 62400/-. I am a salaried employee with 18.5lakhs salary. Please suggest.
I have deductions from other investments like PF, SS etc in section 80C already totalling to 1.5 lakhs. Is this benefit of 1.5 lakhs from Home loan principal repayment over and above the 1.5 lakh deduction from other investments in Section 80C ?
No, the principal repayment will be considered under section 80C and the maximum deduction allowed under section 80C is Rs 1,50,000.
Can I avail of exemption u/s 24 b when principal repayment is Nil?
Yes, you can claim exemption u/s 24 even when the principal repayment is NIL
A property of 1200Sq ft is jointly owned by Mr A and Mr B. And loan of 60 lacs is taken for this property purchase.
Can they claim sec 80EEA benefit? Since share of each in the property is only 600Sq Ft- within the limit of 645 Sq ft.
Yes they can take the benefit but the amount of Deduction does not exceed Rs 150000 and is allowed in computing the total income of the individual of Assessment Year beginning on 1st April 2020
Hi,
So, there is a property of 55L with ownership between A & B and a loan amount of 50L which is repaid only by B. Can B take the benefit of 80EEA for an additional 1.5L over Sec24 as each person’s ownership is halved between A & B?
Can I claim rebate of Rs. 50,000/- u/s 80ee (being already eligible), if the interest portion for said period is Rs. 2,18,000/-, out of which tax benefits of Rs. 2,00,000/- u/s 24(b) has already availed OR I should take rebate of only remaining amount of Rs. 18,000/-. Kindly advise keeping in view S. 80ee of Income Tax Act.
You can only claim the amount of Rs 18000 as you have claimed the deduction of Rs 200000 u/s 24(b).
Hello
I have 2 sources of income
My Form 26AS shows TDS deduction one under section 192 and other under section 194JB.
Which ITR form to be used.
Section 24b, not available or visible in new ITR-1 form.
To get benefit of Rs. 2 Lakhs ( interst on Home Loan) , no option provided.
Any response, please post here.
In the case of joint owners, can each owner claim individually under 80c and 24 to the extent paid for the financial year?
Yes, In the case of Joint Owners each owner can claim 80C and 24 deductions for the financial year to the extent of their share in the property.
“to the extent of share in the property”, where is it written in the act or rules specifically?
I mean even if the share is equal, deductions can be unequal in my view.
Please quote the relevant provision of law, to confirm that the deduction will be available in proportion to the share in ownership.
You can just simply put that on Interest on Loan Under the head house property, it will automatically go to section 24b
can i claim 80ee for house purchased on march 2018?
NO.
The loan should be sanctioned between April 1, 2016, and March 31, 2017, to claim a deduction under this section
I will be able to claim tax benefit of 80EE if my interest amout paid is below 2 lakhs
Home loan Interest amount is below 2 Lakhs will I be able to claim tax benefit of 80EE
Loan taken in August 2016 and loan value is below 35 lakhs and property value is below 50 lakhs
I want to purchase resale property having OC received in 2013.
I am First Time Home Buyer, with loan amount 45 lacs.
home size carpet area 629 sq.ft. and Terrace 91 sq.ft. (Total 720 sq.ft.)
Am I eligible to take benefit of 80EEA if purchase resale property in Jan 2022?
Hi Pradeep,
I do not have a house but I hold a residential plot in my name. Now if I buy an affordable home with a home loan up to 30-35lakhs that satisfies all conditions of 80EEa and Am I eligible to claim tax benefits both in 24a and 80eea?
how to file IT return for AY 2019-20
Is interest on Home loan considered while deducting TDS and if YES where is it mentioned in the form 16 to be issued
Principal amount of house building loan deduction can be claimed as80c sec but ch6a+b. Total deduction is allowed 1’5 then how could I be able to take the benifit of principal amount deduction pl let me know
You can claim the principal benefit only under section 80C which is subject to a maximum of Rs 1,50,000.
Dear Sir
I have taken a home loan in 2012 and in Jan 2021 I got possession of the same.
For the financial year 2021-22 how much tax benefit I will get, is only for interest amount or any principal amount I can claim.
Regards
ashwini
My Home loan was dispatched in Feb 2018. Property value is below 45 lakhs and below the required sq ft area. Can I apply for 80EEA? I’m NOT eligible for 80EE.
The assessee is eligible to claim deduction u/s 80EEA if the loan is sanctioned from the period April 2019 to March 2020.
I am state gov employee and have taken housing advance from my office. Currently i m paying only principle amount. Interest will pay once principle is fully repaid. How should I claim interest deduction in ITR?
Please refer the section 80C, 24(b), 80EE and 80EEA.
Regret to state that you do not give any advice. You only advice people to refer to certain sections of the I. tax Act.
Pointless for people to be seeking any advice from you.
Sir, we provide solutions to queries that are related to our blog. We don’t provide any consultancy.
It is the interest debited in the account that can be claimed. It is clarified that the claim under section 24 is for interest accrued in the loan account and even if not actually paid by the borrower. Just take a statement of account for the last financial year and add 12 months interest debited in the account and claim it subject to a maximum of 2 lacs. It is permitted. Most of the PSU employees have filed and it’s permitted.
The housing loan is taken on 20/11/20. Pre -emi interest for 20/1/20 – 30/11/20 paid on 01/12/20. Thereafter interest for December, January, February and March paid/will be paid on the first of the following month. I wish to know whether the interest for the month of March 2021 that will be paid on 01/04/21 will be eligible for deduction in the current financial year.
Please refer section 24(b), 80EEA, 80EE, and 80C of the income tax act 1961
I have gone through those sections of the I. Tax Act. The question that I have asked is not properly addressed. That was the reason I have asked the question. Would appreciate your reply. Thanks.
Hi, Section 80EEA says the stamp value of the property should be less than 45 lakhs. Here stamp value of the property refers to stamp duty paid or the value of the property? I have purchased a property of value 1.37 Cr and the stamp duty paid is around 8 Lakhs. Would need more clarification.
Hi Sir
My housing loan was approved in May 2017 and it was my first house. Am I eligible for deduction in 80EE?
I have taken a loan on a house under construction in Sept 2019 and have started paying EMIs. However, I am yet to get possession., as it is delayed due to the pandemic. What sort of tax rebate and under what categories can I claim while filing ITR for the year completing March 31st, 2020. Request a reply plz.
Please refer section 24(b), 80eea, and 80c of the income tax act 1961
Hi,
My question is regarding ITR Excel/Java Utility.
My wife and I have bought a house property jointly for which the total interest for FY 2019-20 is 3,50,000 and is equally contributed by both.
So after entering the ownership as 50%,
should I enter the field “B2 (v) Interest payable on borrowed capital” in the ITR2 Form as half of 3,50,000 = 1.75L or
should I enter 3,50,000 expecting the ITR2 Excel/Java utility to do the calculation?
What is the criterion for claiming medical expenses for parents under Section 80D? Is there any criterion to decide dependent parents as per section 80D?
PLEASE REFER SECTION 80D
Hello Sir,
I am a central govt employee and am living in govt quarters. I have purchased a flat in co-ownership with my husband. Can I claim the interest on the home loan paid under “Self-occupied” house property? Or do I need to show calculation as “deemed-to-be let out” property?
If you have taken loan in your name then you can claim interest by showing property as deemed to be let out.
If the loan sanctioned on Jan 2019 i.e fy 18 19, can someone claim 80eea while filing for fy 19 20?.
I have taken a home loan in Aug 2013, am I eligible to avail of section 80EE?
Deduction under Section 80EE is allowed only when the loan is sanctioned between 1st April 2016 to 31st March 2017.
Sir, I took a Home loan in 2010 & got possession from Unitech in 2019, under Supreme court intervention. I have rented out the property also. Can I claim Sec 24 benefits even though the house took more than 5 years to be built? Also, the house is NOT Registered till date ( No stamp duty paid) & only a possession certificate has been given by Unitech. Can I claim Section 24 benefits of Rs. 2 Lakhs + Pre-construction interest/ divided by 5? Pls, share advice.
Deduction of Rs 2 Lakh plus Pre-Construction Interest u/s 24 will be allowed only when the property is acquired or constructed within 5 years from the approval of the Loan and that loan is taken after 1st April 1999. so you will not be able to claim the benefit of Rs 2 Lakhs for this.
Hi,
My loan sanction date is 01-01-2019 and my property value is less than 45 Lacs. Can I claim interest of 1.5 LAC under section 80EEA for both FY 2018-19 and 2109-20?
As per the article, an individual loan sanction date should be between 01st April 2019 to 31st March 2020.
Please confirm if I can claim for at least one FY year under 80EEA
No, as the loan sanction date should be from 1st April 2019 to 31st March 2020
my loan sanctioned date is 27th of March 2019. Am I eligible for 80EEA
If loan sanctioned on jan 2019 i.e fy 18 19, can someone claim 80eea while filing for fy 19 20?.
Please read section 80EEA of the income tax act 1961
I too have the same question, my loan sanctioned date is 27th March 2019, am I eligible for 80EEA, where it says 1st April 2019 Only 4 days gap
Sir,
I have taken sbi home loan in 2016- 17 financial year….in november 2019 work completed…now AY 2020-21, I calculated pre construction interest up to march 2019 divided in 5 equal part…now total interst for this year comes as 2,80,000/-(1,75,000/ +105000(1 part of precon interest)…can i claim 2 lac under sec 24b and 50,000/- under 80ee ie total 2,50,00/- in AY 20-21??( it satisfy condition of 800e deduction)
PLEASE REFER SECTION 24(b), 80EE AND 80EEA OF INCOME TAX ACT 1961
Dear Sir,
I have recently purchased a property, amounting to less than 45lakhs. And I’ll be able to move by eod of this month i.e. Nov 30, 2020. Here, before moving into that property, my interest paid towards the loan will stand for 45 days approximately around 30000/-. And after moving in can I claim house loan interest?
I request to help me with the current financial year what should I declare in the investment declarations to claim house loan interest paid (Considering Section 24 a,b, 80EE, EEA, etc). And this is my 1st property.
Appreciate and thankful for your advice in advance.
Thank you very much, sir.
PLEASE REFER SECTION 24(b), 80C, 80EEA OF INCOME TAX ACT 1961
Sir, Kindly let me know under what column the “repayment of housing loan” to be shown while filing the ITR-1 by e-filing for AY 2020-21. In the ITR-1 Form, under B2(v) the “interest payable on borrowed capital” appears. Whereas for section 80C of the Income Tax Act, the repayment of the principal amount of home loan column is not appearing the said ITR-1 Form. Kindly let me know where to show the repayment of the principal amount of home loan in the ITR-1 Form by e-filing for the AY 2020-21. Thanks
The repayment of the principal amount of the home loan is to be directly shown under chapter VI-A 80C Deductions.
Thank you Sir.
Hi,
I have 2 properties, one is self-occupied & the other is let out. For AY 20-21, the claim amount u/s 24 is 1.2 Lacs. However, I have a carry forward loss from the previous year of ~80,000. I have been filing ITR-1 till last year. To include the carry forward loss and claim complete 2 Lacs in current AY, do I need to file ITR-2?
Thanks
For claiming complete 2 lacs loss in current AY and for carrying forward of loss you need to file ITR-2
Hi, I and my husband have bought an under-construction apartment that can be possessed in 2023. The total property value will be 70 lac. and we have got a joint home loan of 65L.
1. whether can we avail of the tax benefit from now onwards or after the completion of the construction?
2. according to 80C, the total limit is 1.5L. the principal repayment limit is 1.5L. my doubt is that the Principal repayment limit is apart from the total 1.5L?
3. loan taken for 65 lac. now to avail additional tax benefit for the first time house buyer, can we bifurcate the 65 lacs and avail the benefit?
Thanks in advance
What is the reply given to Mr.Aswini, for his query, can I get this, thanks
Dear SAG Team
I have taken a home loan of 48 Lac in the month of Mar 2020. Where EMI is Rs 48500.
How much Interest and the Principal amount is eligible for this FY 2020-21 and previous year also. Since am got the sanction of Home loan on 19.03.2020.
Please clarify
Please refer section 24(b), 80c, 80ee and 80eea of income tax act 1961
Sir, can we claim interest paid on house property in the year in which house property is sold
FOR CLAIMING INTEREST ASSESSEE SHOULD BE THE OWNER OF PROPERTY
Is there any benefit for the loan taken on commercial property purchased. what kind of loan would be helpful, if a personal loan is taken and invested in commercial property, what are the tax benefits.
Hello SAG Infotech.
If the property is purchased in joint name, does it mean that the stamp value of the property and home loan availed can also be shared on both the name? For example, if property stamp value is 65 lac and loan taken is 74 lac, is it correct that property value can be considered as 32.5 lac and loan can be considered as 37 lac for each owner.
If the property purchased in the joint name then stamp duty value of a property will be bifurcated in the proportion of their ownership share and house loan also taken in a joint name then loan taken is also bifurcated in the ownership share.
I had got the 29lac loan sanctioned in June 2018 from financial coy and got the balance loan of around 23lac was transferred to a bank in July 2019. will I be eligible for interest deduction under Sec 80EEA?
My son and wife jointly purchased an apartment (co-owners) in Aug 2019, for which they have paid 11.0 Lakhs as stamp duty. The payment towards the loan was 75000 for the principal component and 7.5 Lakhs towards the interest. The property is let out.
1) Can each of them claim 1.50 Lakh deduction under section 80C?
2) Considering 50% ownership and equally dividing the income and interest liability, Loss from House property works out to about 2.9 Lakhs per head. Can both of them claim the balance (90,000) as carrying forward losses in schedule CFL?
Thanks in advance for the clarification
1) Yes, 1.5 lakh deduction under section 80c can be claimed by both of them
2) No, Loss from house property can be claimed by both of them in their proportionate shares i.e. 1.45 lakh by son and 1.45 lakh by your wife.
How much to claim a deduction for interest on H/L, apart from 80C 150000. A bank loan is taken for self-occupation in 2013.
hi, sag infotech… I have obtained a loan on dec-2019 the total EMIs that I have paid for 3months for FY19-20. is it that I can claim 80EEA deductions for the 3 months period ?? or can I claim for the whole year i.e jan2020 to dec2020?? . could u please help me with this.
thankyou
Please refer section 24(b), 80EE and 80EEA oF Income Tax Act 1961
my home loan was sanctioned on Feb 2019 but the actual amount was disbursed in April 2019 and sale deed was done on the same month April 2019. Am I eligible to claim for exemption under 80EEA for AY20-21?
Please refer section 80EEA
I have taken a personal loan to renovate our house and the house is in father’s name who has decreased a year ago. Can I avail of tax benefits for the payment of interest?
Please refer section 24(b), 80EE and 80EEA oF Income Tax Act 1961
I have taken loan of 13 lakhs- affordable housing scheme and flat is under construction. It is my first home, so can I claim 50000 under 80EE as other exemption I am not able to claim till possession?
I had purchased the shop in 2017 with a loan from financial company & I had already owned a house in my name so shall I have taken exemption in the Income tax return for Interest & Principal amount on Loan.
Please refer provisions of section 24(b), 80EE & 80EEA of Income Tax Act 1961
My and my wife both are jointly purchased a flat Rs. 22,50 lakhs and house loan took 15 lakhs my and my wife are doing professional business. the EMI was deducted from my wife account my wife is an IT assesses she can avail interest and principal in income tax 24(b) and 80 c sections or both are share interest and principal amount at the time of Income-tax filling interest is accumulated Rs.57,000/- and principal Rs.8500 for 3 months pls give clarification to us
Please refer to the provisions of Section of 80c and 24(b) of Income Tax Act.
Hello
Stamp duty charges and registration fees for an under-construction property as a part of the registration of agreement of sale paid in the month of July 2020 can be filed under the exemption for FY 2019-20 as per new extension of dates in view of COVID pandemic.
Thank you
Yes, you can claim. For further clarification please refer to the notifications.
Dear Sir,
Can exemption under section 80EEA be claimed for the under-construction property?
Thanks,
80EEA can be claimed for interest on loan taken for the purchase of residential house property.
I had taken a home loan for 27 lacs in Jan 2018.
Under what sections I have to file the Interest? Either 80EE or 80EEA or Section 24?
Can you pls help? I am paying an annual interest of Rs 2.1 lacs.
You can claim interest up to Rs 200000 u/s 24. You can also claim u/s 80EE OR 80EEA subject to conditions mentioned in respective sections
In case of Joint Loan, Interest as per Interest certificate is Rs 90000 and Principal Is Rs 160000
So whether both co-owner can avail 90000 each u/s 24 and Rs 1.5 Lac each u/s 80C…? Or Interest amount can be claimed by both co-owner only when Interest and Principal exceed Rs 2 lac and 1.5 Lac..?
And if only one owner pays the Interest and principal then whether it can be claimed by both owners..?
3rd query: One owner is bearing Interest and another pays repayment of principal but payment made from the single bank account. The other party only reimburses the interest portion only. So what would be the claim amount for both of them..?
If the loan is taken jointly, then each of the loan holders can claim a deduction for home loan interest u/s 24 and principal repayment u/s 80C. To claim this deduction, they should also be co-owners of the property taken on loan
I had taken a home loan for 27 lacs in Jan 2018.
Under what sections I have to file the Interest? Either 80EE or 80EEA or Section 24?
Can you pls help? I am paying an annual interest of Rs 2.1 lacs.
Sir
I have taken a housing loan, from LIC HFL to construct the first floor.(Self-occupied)
The loan sanctioned under the category ‘ Extention of House /Flat’. I have paid 82000/- towards interest and 58000/-towards principal.
In this case, how much tax rebate will I get?
Is it a full amount of loan or 30000/-?
You can claim interest under section 24 and principal repayment under section 80C
Hello.
I have taken a loan on 52 lakhs and I bought the property for 70 Lakhs,
Here, tax is deducted from my salary every month, When I applied for the tax deduction, The Accountant has mentioned the stamp duty value is more than 45 lacks. And I have paid only 3,80,000 as stamp duty.
Kindly guide with your expert input so that I could share your input to my HR and accountant,
Hi
Stamp duty value of property means the value on which stamp duty is required to be paid. In your case, if you have paid 3.80 lakhs as stamp duty on 45 lakhs value, then Stamp duty value is 45 lakhs and stamp duty paid is 3.80 lakhs. For submitting the information to HR, you need to mention the principal amount of loan paid during the year and stamp duty paid during the year both of which are eligible for deduction under section 80C up to 1.5 lakhs. Also, interest paid on house loan during the year is eligible for tax benefit under section 24(b) up to 2 lakhs.
I have taken 28 Lacs loan from SBI in the current financial year. Is there any benefit declared by the govt in the bracket of 6-18 lacs /yearly income bracket?
Sir,
I request to inform you that Interest on Housing Loan INR 2,00,000/- u/s section 24 and Principle INR 96,779/- where to shown In form 24-Q for F.Y.2019-20 – 4th quarter as the section 24 column is not provided in Form 24-Q. Regards
Sir, I have taken a home loan on March 2020, total interest 325000, and principle 110000 can I claim the interest part both 80eea and section 24b. please clarify.
Deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act. So you can claim interest under both sections
I have taken a loan from a friend for the construction of a house. House construction completed. I am paying interest to a friend. Can I claim interest u/s.24? It is informed that loans must be taken from financial institution ie banks etc now mandatory. from which assessment year it has taken place.
Thank you and regards
Srinivas
You can claim interest u/s 24 if loan taken from bank and financial institution.
I have a housing loan with a joint name me and my father but the house is own by my father only but 100% EMI is debited from my account as my father has no source of income. Do I get tax benefits?
If the loan is taken jointly, then each of the loan holders can claim a deduction for home loan interest and principal repayment if they are co-owners of the property.
Hi Madhav
For claiming tax benefits under income tax act, you need to be borrower and owner both. In your case, i suggest that you should revise the terms of sale deed and become co-owner to the property.
Dear All
Let me know first time home buyer 2019, how much amount exemption will get (Interest Part) under 80EE, What are the supporting documents required to submit while income tax filing.
You can claim deduction u/s 80EE up to Rs 50000 if the loan has been sanctioned between 01.04.2016 to 31.03.2017. For further details kindly refer to section 80EE.
You can claim deduction u/s 80EE up to Rs 50000 if the loan has been sanctioned between 01.04.2016 to 31.03.2017. For further details kindly refer to section 80EE.
Dear Pradeep,
My home possession: June 2016. So, I took rebate on the (Total pre-construction interest amount / 5) for 3 years (in FY 16-17, 17-18, 18-19).
As per the rule, I am eligible to take rebate on the remaining two installments in FY 19-20 (current FY) & FY 20-21.
But my employer saying that these remaining two installments of pre-construction interest amount is not eligible for the rebate, as I have closed(fully paid) my Loan account in FY 18 -19 (last FY).
Could you please confirm this and guide?
Thanks!
In case of loan taken for purchase or construction of a house property, you can claim a deduction on pre-construction interest. The deduction for interest paid before construction or completion is allowed in 5 equal installments from the year in which the house is purchased or the construction is completed.
Sir, I have taken a joint home loan in February 2019. Can I get the benefit of Section 80EE or 80EEA?
There is nothing specific mention about the interest on home loan taken jointly under section 80EE or 80EEA.
I have taken house loan during February 2019 can I get exemption on principal amount and interest paid this is my first-time house purchase
Also, I have paid stamp duty and registration fees for the mortgage and transfer the property on my name total RS. 192000/- stamp duty and registration fees for transfer property on my name.
And availed housing loan stamp duty and registration fees paid 30500/-
Can I claim for 2019-20 AY r2020-21??? please guide
Interest on house loan – If the loan is acquired after 1st April 1999 and construction of the house is completed within 5 years from the end of the financial year in which loan is taken then the amount of deduction for Interest on house loan u/s 24(b) will be maximum Rs 2 lakh otherwise deduction shall not exceed Rs 30000.
Principal Amount:- Deduction u/s 80C will be available for the principal repayment of house loan.
Sir,
I have availed housing loan in July 2018. I and my wife are its joint borrowers. kindly let me know if we can claim deductions under section 80EE or 80EEA. confused to see that deductions under 80EE of Rs 50000 are allowed for loan sanctioned between April 2016 to March 2017 and that of Rs. 150000 are allowed for loan sanctioned between April 2019 to March 2020. What about the in-between period of sanctioning i.e April 2017 to March 2019.
There is nothing specific mention about the interest on home loan taken jointly under section 80EE or 80EEA. Deduction u/s 80EE, 80EEA is not available for the period from April 2017 to March 2019
Dear sir, I took the sanction letter of home loan of 18 lacs in 2012-2013 under CLP plan. Bank paid the amount to the builder as per demand by the builder in installments as per construction. I paid only interest of this amount up to December 2014. From December 2014 I am paying principal and interest both. I received the possession letter in November 2018. Kindly guide me if I am eligible for 2 lacs rebate on interest.
Under section 24 of the Income Tax Act, Rs 200000 will be allowed as a deduction from House Property Income if the construction is completed within 5 years from the end of FY in which loan is taken otherwise Rs 30000 will be allowed as a deduction
how much home loan interest amount will be considered for loan taken more than 45 lakhs, is it 2 lakhs or 3.5 lakhs. please clarify. Thank you.
The interest on the home loan paid for the year can be claimed as a deduction from your total income up to a maximum of Rs 2 lakh under Section 24. The Principal portion of the home loan paid for the year is allowed as a deduction under Section 80C. The maximum amount that can be claimed is up to Rs 1.5 lakh. But to claim this deduction, the house property should not be sold within 5 years of possession. You can claim additional deduction u/s 80EEA for maximum up to Rs 1,50,000. To claim this deduction, the stamp value of the property does not exceed Rs 45 lakhs and loan must have been sanctioned between 1 April 2019 to 31 March 2020.
My yearly interest component is 4 lacs for a loan taken on Apr 2018. The property is self-occupied. Since I can only claim 2 lacs ceiling on interest, is there any provision for claiming the additional 2 lacs loss? If I let out this property, can the full interest component be claimed?
Hi,
My brother and I share the medical insurance premium of our parents. The proposer of the insurance is my brother. I pay him half of the amount. Can I claim half of the amount of the premium under section 80D?
Thanks
Manav
You are not eligible to claim deduction u/s 80D as the proposer of the insurance is your brother.
Why are there no extended benefits like 80 EE or 80 EEA for houses booked in FY 2018-19
Date of Loan sanction is 26/04/18 and flat was occupied on 1/09/2018. Both the schemes 80EE and 80 EEA are not covered for this date particularly. Any reason why only this year is not under special benefits?
In FY 2018-19 section 80 EE benefit is not available.
Dear Sir/Madam,
I have taken a joint loan which was sanctioned on 23-01-18 which comes under FY 2017-18. The loan amount is 10 Lakh and the property value is 45 Lakh. Am I eligible for either 80 EE or 80 EEA? For how much deductions am I eligible?
not eligible for FY 2017-18 or even 2018-19, it is w.e.f FY 2019-2020
Hello Sir/Madam,
I purchased a new house in Jan 2018 (Under construction property).
From Jan 2018 to Aug 2019, I paid home loan interest up to 2 Lakhs (for the under-construction property).
In Sep 2019, I got possession.
In FY 2019 – 2020, I am paying 2.73 Lakhs home loan interest.
Questions:-
1. In which section I will show the interest paid before possession? And how much I can show?
2. Can I show 2.73 lakhs in section 24 in FY 2019 – 2020?
3. Can section 80EE or 80 EEA is applicable to me?
Thanks in advance
In case of under-construction property, you can claim the deduction u/s 24 interest on the home loan in five equal instalments starting from the year in which the property is acquired or construction is completed up to a maximum of Rs 2 lakh. The principal portion of the EMI paid for the year is allowed as a deduction under Section 80C. The maximum amount that can be claimed is up to Rs 1.5 lakh.
If the following conditions are satisfied you can claim deduction u/s 80EE up to Rs. 50,000 per year until the loan is repaid –
Value of the house should be Rs 50 lakhs or less
A loan taken for the house must be Rs 35 lakhs or less
The loan must be sanctioned between 01.04.2016 to 31.03.2017
As on the date of the sanction of loan, no other house property must be owned by you
I had booked flat on Aug 16 and loan approved for 35 lacs on Nov 16 for same. Possession of flat is due on Jan 19.
Below is interest paid in 3 yrs till the date of possession
FY 2016-17 – 28686
FY 2017-18 – 161936
FY 2018-19 – 263270
The interest of current FY 2019-20 will be approximately 273640.
how to calculate the amount for Section 24(B) for interest paid as interest for current FY is exceeding 2lacs?
As this is first home and satisfying all conditions of 80EE, I can declare 50,000 in 80EE.
Do I have option to refile IT returns for previous FY years?
You can claim a deduction of interest paid in earlier FYs as “pre-acquisition interest” in 5 equal instalments beginning from FY 2018-19. However, if it is a self-occupied property, maximum of 2 lacs can be claimed in a particular FY.
Hi,
I have an accumulated pre construction Interest for past 4 years of Rs. 10,26,577.00. Now The house is deemed let out. The house was handed over in April 2019. While filing online returns I am getting only 2,00,000.00 exemption under section 24. How do I claim accumulated interest while filing online return given I will have Interest from House loan more than 2 lakh this year too. So next year will be same issue for me.
Section 24 deductions are capped at 2,00,000. That means even if you have paid interest above 2L, only 2L will be allowed as deduction.
I have purchased a Flat in April 2018 and Took a Home loan on the same month i.e April 2018 and I am a First-time Property buyer with loan amount less than 30 lakhs and Total Property Cost less than 50laks can anybody suggest will I be eligible for Tax claiming under section 80EE.
Deduction u/s 80EE is only allowed to those assessees, to whom a loan has been sanctioned on or before 31/03/2017.
My taxable income is 560000/-. I have used my 80c limit of 1.5 lakh, including my home loan. How I can reduce my tax?
You can invest Rs 50,000 under section 80CCD (1B) in the National Pension Scheme. You can pay Rs 25,000 premium for medical insurance policy(ies) for yourself and family and claim a deduction of Rs 50000 from gross total income under section 80D. This deduction can be up to 75000 if you also pay the medical insurance premium for your senior citizen parents.
I have taken a loan which sanctions in April 2017 with Axis bank. The old loan account was closed in Oct 2018 & the new account was opened in 2018 for the same property. So Can I claim additional interest under section 80 EE under new loan account?
The construction was completed in 2018…
The bank approved my loan starting 26-02-2015 and the final disbursement was in 20-04-2016. Between the start date and final disbursement, there were 6 step payments by the lender to the builder. Would I be eligible for Section 80EE claim this year?
I was not aware of this for the last to IT returns and have not claimed the same towards that. Please advise. Thanks!!
The deduction under 80EE shall be subject to the following conditions, namely:—
(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April 2016 and ending on the 31st day of March 2017;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees;
(iii) the value of residential house property does not exceed fifty lakh rupees;
(iv) the assessee does not own any residential house property on the date of sanction of loan.
since your loan has been sanctioned before 01.04.2016, therefore, you cannot claim deduction under section 80EE for the A.Y. 2019-20.
Hi,
I am scheduled to get possession for my second house before 31st March 2019. Due to higher property value & as loan sanctioned in 2015, I may not be eligible for tax benefits under section 80 EE. However, can I claim entire interest amount paid in FY 2018-19 for tax benefits if I complete possession formalities before 31st March?
If I let out the second property, then what is the upper cap for the amount of interest paid for the second housing loan that can be claimed for tax exemption?
Yes, you can claim an interest deduction for fy 18-19 if possession is taken in March. No upper cap for the amount of interest paid. set off of losses is allowed up to Rs. 2 lakhs from other of income.
I have purchased home in 2017. I claimed 80ee benefit in ay 2018-2019. My question is can I take benefit of 80ee this year also ay 2019 2020.
Yes, you can claim a deduction for payment of interest on house loan is taken in 2016-17.
Yes, you can claim the deduction in AY 19-20 also.
Hi,
I am about to get the possession of my second house before 31st March 2019. Due to loan sanction date & loan amount, I am not eligible for tax benefit under section 80EE. However, can I claim tax benefits on the entire interest paid in current FY? If I let out this property, would there be any upper limit on the interest amount that can be claimed for tax benefits?
Hi,
I have purchased Empty plot ( 1200 Sq ft) with an SBI Home loan of 5.5 Lakhs in Nov 2018. Paying EMI of 11K. This is for the first time I am taking a home loan & I do not have any other property under my name.
Will I be eligible for any tax benefit? Sec 24 (b), 80 EE or under any other section?
Thanks
Srirama
80ee is not available since the loan has not been sanctioned by the financial institution during the period beginning on the 1st day of April 2016 and ending on the 31st day of March 2017. but you can claim deduction under section 24(b).
Sir, I have two house loan. Can I claim two house loan interest in section 24 in limit 2.00 lacs for f.y.2018-19?
Yes, you can claim.
Respected sir,
Will I be eligible for deduction under this section if my house loan is sanctioned after 01 Apr 2017.
Thanks and regards
Kamlesh Pant
As the prerequisite for claiming deduction u/s 80EE, is that loan should be sanctioned between 01/04/2016 to 31/03/2017, so you will not be eligible to claim deduction u/s 80EE
I HAVE PAID MY TOTAL LOAN OUTSTANDING IN NOVEMBER AND I HAVE NO DEDUCTION U/S 80 C EXCEPT HOUSING LOAN PRINCIPAL. KINDLY TELL ME THE CLAIM AMOUNT IN 80C
Only principal amount paid during the period is eligible for 80C deduction.
Dear Sir,
I am paying H/Loan Interest of 350000/annum and have paid TDS amount of Rs 62000/- in this Fy. As per section 24 how much deduction can I claim and further can I also claim the deduction of TDS amount of 62000/-
My husband’s father taken a home loan and was paying EMI but now after retirement, my husband is paying the EMI. The loan is taken on my husband’s fathers name for the renovation of the house. Now whether my husband takes tax saving benefit of EMI paid and if not then whether is it possible to change the name of loan owner in the bank from my husband’s father name to my husband name?
For claiming tax benefits, both the house and loan should be in the name of the person (owned or co-owned) claiming such benefit.
Hello,
I’ve a query on income tax exemption on multiple home loans.
For my first home loan, I’m paying interest of 1.4 Lakhs and principal repayment of 1.38 Lakhs.
For my second home loan, I’m paying interest of 4.35 Lakhs and principal repayment of 1.42 Lakhs.
My query is specifically for the second loan. If I declare second home as deemed let-out then can I claim an exemption for full 4.35 Lakhs (excluding nominal rent)?
Or is it that maximum benefit that I can avail together for both house is 2 Lakhs?
If its the former one, then can you point me to an income tax section or an official link that I can present to people evaluating IT liability in my office, as they reckon its the later one and the benefit that I would get on interest payment cannot exceed 2Lakhs.
Thanks.
As the second house is treated as deemed let -out and as per recent amendments in section 71, losses under house property can only be set off up to Rs. 2 lacs, the remaining amount of interest can carry forward for next years for set off.
Hi,
I have taken loan amount of 28 Lac on July 2017 and property value is 36 lac. Am I eligible for 80EE?
As your loan has been sanctioned after march, 2017, you are not eligible for claiming deduction u/s 80EE.
Me and my father have taken a home loan of 10 Lakh jointly. My father is co-borrower. The loan is for the renovation of the house. The house is on my father’s name. And I am living in a different city, my father stays in that house and that is in construction. Probably will be completed in a month or so. I am paying 9k as EMI of the loan.
Can I get the tax benefit for interest as well as the principal amount on the loan i.e section 24(b) and 80C?
Thanks in advance.
In order to claim tax benefits u/s 24, the main condition is that the property should be owned or co-owned. Since the property in your case is on father’s name, you cannot claim these deductions.
Deduction u/s 80C is available only where the loan is taken for acquisition or construction of residential house.
Hi,
Is there a restriction on where the property should be present like within the city municipal or town municipal/metro city etc?
Can i claim tax benefit under section 80EE of income tax for interest paid for home loan of an under construction property if I am otherwise eligible.
As per the wordings of section 80EE, the loan should be taken for “acquisition” of residential property. Thus you cannot claim deduction w.r.t. under the constructed property.
Hi.
My total Home loan Interest was 3 lakh in FY 2017-18, and out of which only 2 lakh was allowed as for tax deduction.
Now as per rules, this balance interest component can be carried forward in the next 8 yrs, but anyone explains me the process for that.
Suppose 3 years later my interest outgo is 1.5 lakh then can I take the carry forward benefit in one go Or there is some restrictions or rules (like for pre-construction period interest is carry-forwarded in 5 equal installments)
Please clarify your query. You can refer to the examples available for section 24b read with section 71(3A)
I have purchased a Property worth 62 lakhs, jointly with my wife.
The Loan Amount is 46 lakh and we equally give the EMI to bank.
The property is on fully let out on rent and i have shown the income from house property subtracting the Interest paid under sec 24 and rent coming from property.
I am using the 80C section for Repayment of Housing Loan and using it upto 1.5 lakhs.
Since this is me and my wife’s first property, so can we avail House Loan Interest Deduction U/S 80EE?
For claiming deduction u/s 80EE, property value must be below than Rs. 50lacs. So, as your property value exceeds the threshold limit, you are not eligible to claim interest deduction u/s 80EE.
I have taken the home loan in the year 2013 from Corporation Bank for Amount of Rs 29 Laks. Later I have switched to SBI in Dec 2016. Am I eligible for benefit of Rs 50,000/- under 80 EE.
The term used in section 80EE is “loan sanctioned”. Since the loan is sanctioned in 2013, no deduction will be available.
Hi, my question is what if someone has taken Mortgage loan for house development but the bank certificate clearly mentioned Mortgage loan,
Can he claim interest exemption same as housing loan interest?
You can claim deduction of principal repayment under 80C and interest u/s 24 (up to 30000/- if loan is for repair, renewal or reconstruction of house)
Hi
I just purchased the flat amount of Rs 38,00,000/-
The building is in under construction. That will be completed on Year – 2022
I had taken Rs. 31,00,000/- home loan. I m working in one software company. My CTC is around Rs. 8,00,000/-
My monthly EMI is Rs. 27,800/-. So I m paying yearly (27800 *12)= Rs. 3,33,000/-
Please let me know what kind of the tax benefit, I will get of home loan principal & home loan interest under form 16.
Thank you very much in Advance
As the house is still under construction, so deduction u/s 24(b) off interest paid on the home loan will be allowed from the year in which construction got completed.
I had purchased my first flat for 37 lac through the home loan of 26 lac sanctioned in Aug-16. I got possession of flat in Sep-17. My pre-EMI interest is around 1 lac. My loan interest for FY:2018-19 is around 2.2 lac as per provisional loan statement was given by my bank. 1/5th of pre-EMI is coming to be 20k. Now can I claim my pre-EMI interest in section 80EE? How much can I claim under section 80EE considering both normal interest and pre EMI interest for FY: 2018-19.
You can claim deduction u/s 80EE Up to Rs.50,000 for the A.Y. 2019-20.
I am a senior citizen and own a house property. I plan to build/construct an additional floor on the same house property for which planning to avail home loan.
“Question: under which sections can I claim tax benefit and for how much amount if
a) the newly constructed floor is Self-occupied by me”
b) the newly constructed floor is Let out on rent by me. I still stay in the same house in the other floors.
Details of Loan:
Loan Amount : 10,00,000 Lac (INR)
Monthly EMI – 20,613 per month (INR)
Interest rate: 8.70%
The total interest which I will be paying in a period of 5 years
Duration of Loan: 5 years from 1 April 2018 to 31 March 2023
Expenses incurred before availing the home loan in 2017:
Paid charges to MCD for approval of construction and floor plan: 1,00,000 (INR) in the year 2017 (Loan was taken from relatives for this amount. Interest paid to relatives @7% p.a for 2 years)
Home Loan has taken in the year 2018:
“Expenses incurred at the time of taking home Loan:
Property clearance report charges: 6,000 (INR)
Property Valuation charges: 7,000 (INR)”
Construction of Property started in the year 2018 after taking Loan and finished in 2018 itself
Please refer to section 24(b) and 80EE of Income Tax act.
I purchased a house availing Home Loan which is fully adjusted. Now I want to avail Home Loan for extension of construction. Can I avail exemption U/s 80 C for repayment of principal?
An 80-C deduction can be claimed on principal repaid for purchase or construction of residential property. You have already claimed the deduction for the purchase of a house. Now if you are constructing a new floor altogether then the deduction will be allowed.
I have got a home loan starting August 2016 for 35 lakhs. However, construction of my flat got completed in January 2018 and I took the possession in July 2018. We are currently looking for the tenant to rent out this flat. As the construction got completed in 2017-18, I am now looking to get tax benefits on interest paid on both pre-construction and post-construction. As I have EMIs of around 30,000/-, I have already reached the 2,00,000/- limit just by post-construction. How can I get benefit from pre-construction period?
As you have constructed your house so you will not be eligible for the excess deduction of Rs. 50000 u/s 80EE, hence you will only be allowed interest deduction up to Rs. 200000, and remaining will be carry forwarded to next years.
Thanks for the prompt response! Though I am still in doubt.
Let’s say I had constant EMI of 30,000/- per month (25,000/- as the interest component). It started in August 2016.
Interest paid in F.Y. 2016-17 = 25000*8 = 2 lakhs
Interest paid in F.Y. 2017-18 = 25000*12 = 3 lakhs
As of now, I have not taken any tax benefit so far. While filing ITR of 17-18, I am showing my running home loan (as construction got completed in 17-18). Hence, I am filing 3 lakhs as home loan interest + 40,000/- (pre-construction).
However, the maximum limit is 2 lakhs for this entire amount of 3.4 lakhs.
So, I want to understand how can I take the tax benefit for the interest paid till March 2017.
I and my wife together purchased a flat and we both are the co-borrowers of the house loan. Now the entire EMI gets deducted from my account and my salary. Actually, I am first time declaring my investment proofs in my Office portal to avoid TDS Deduction. I got the loan of 25 lakhs so how I can declare this amount in the following section
528
Principal Loan (Housing Loan) Repayment
As per Sec 80C–
Deduction u/s 80C (Principal repayment of the loan) can be claimed by you and your wife in proportion to the share in the borrowing. Each co-borrower can claim up to Rs. 1.5 lacs deduction.
Hello,
Do we get tax exemption on the amount we pay as Property Tax every year, to the municipality? If yes, how is the calculation done and under which section of IT it falls? Please provide your valuable info.
The municipal taxes borne and actually paid during the financial year are allowed as the deduction from “annual rental value” of the house property.
yes we get the deduction of municipal tax paid on cash basis (not accrual) , i.e., amount you paid in this year as property tax , you will be eligible to claim a deduction of that amount .
calculation : house property rax is deductable from GAV (Gross annual value)computed as per section 23
gav = step 1 : municipal rent and fair rent wichever is higher is selected
step 2 : compare the rent so selected with standard rent ( as per rent control act ) andselectthe lower of two
step 3 : compare the rent selected in step 2 with the actual rent and select the higher of both
resulting value is your GAV
Now you can deduct the municipal tax from GAV
reffer section 23 for more detailes .
Hi,
I have taken a home loan sanction in December 2015 but took the disbursement in July 2016. Am I eligible for Tax Deduction of Rs 200000 after completion of my property?
Yes, you can claim the deduction of home loan interest u/s 24(b).
Hi,
I am a first time home buyer and got a loan of 45 lakh. In this newly constructed home my parents are staying and I am staying in a different city in a rented house.
Can I claim HRA, the principle under 80C and interest under 24b all at once? and in which category will it fall? Self-occupied or let out?
Yes, you can claim HRA, 80C deduction and 24b. it can be claimed as a self-occupied house.
I and my husband together purchased a flat and we both are the co-borrowers of the house loan. Now the entire EMI gets deducted from my account and my salary. And my husband saves his money and when it is 1 or 2 lakhs transfer that amounts directly to Loan account which reduces the principal amount. Is he also eligible to claim IT benefits on this loan?
Yes, the deduction will be allowed to both of you.
I got my loan sanctioned in the year 2012 for Rs 23,000,00/ for house property. I got possession of this flat in Nov 2017. This is my only house property. I have got the deduction in my Form 16 for Rs 1,83,000/ for the interest paid on this loan for FY 2017-18.
How much Extra deduction for interest paid in last 5 years can be claimed by me in my ITR-1.
Pre-construction period interest can be allowed from the year of completion of property in 5 equal annual instalments.
SIR,
My home loan sanctioned on 15 June 2015 and never claimed 80EE in any assessment year, am I eligible to file 50,000 relaxations in 80EE this assessment year
Regards
Honey
To claim deduction u/s 80EE, the condition is that the loan must be sanctioned in FY 2016-17. Thus you cannot claim deduction u/s 80EE.
Sir, I have purchased a flat at 34.00 lakh on 15.11.2016, however, I have taken a composite loan of 38.00 lakh which includes 32.00lakh purchase loan and 6 lakh repair and renovation loan. Will I be eligible to claim benefits under 80EE??
I have two home loans running. One is self-occupied and other is let out property. How much tax exemption I should get now. 4 Lakhs (2 Lakhs for each loan) or only 2 Lakhs limit together?
Loss on house property can be set off up to the maximum of Rs. 2,00,000 for AY 2018-19 from other head income.
I have taken the loan for one house before 11 years. till last year I was claiming a deduction of principal & Interest. Now this year I have purchased the new house. I think now can claim principal of only one house and interest of both the house. so, can I claim the principal of second house and interest of second house in self-occupied property and interest of first house under deemed let out property?
You can show any one of the property as self-occupied and treat the interest component accordingly. Principal repayment can be claimed for all the houses up to a maximum of Rs. 150000/-.
I have bought a Flat for investment purpose in 2011 and took a loan for it through LICHFL in the same year as it was Construction linked plan. I got the possession of the flat in 2017 after many delays. I have been paying an Interest of appx 150,000 per year as per the interest certificate provided by the Housing Finance Company. This is my second home as I stay in the other one.
Can I claim the interest benefit for this property? If yes would it be only for interest paid in the current year only or I could take benefit of interest of last 3/5 years
Yes, you can take the benefit of interest paid during the FY in its respective ITR. This property would be treated as “deemed let out”. The pre-acquisition interest can be claimed in 5 equal instalments in 5 years beginning from the year in which the property was acquired.
I HAVE PAID RS 70000 AS INTEREST ON HOUSING LOAN IN FY 17-18. CAN I SHOW IT AT INTEREST PAYABLE ON BORROWED CAPITAL? IF NO THEN WHERE CAN I SHOW IT? PLEASE GUIDE.
Yes, you can claim the deduction of Rs. 70000/- under “Income from House property”
Hello,
I have the home loan with ICICI HFC sanctioned on 26/10/2016, and I have claimed an interest in sec 80EE for FY 16-17 & FY 17-18, but in July 2018 I have switched my loan to HDFC for the same property & loan. Shall I get the benefit of sec 80EE for FY 18-19? and which documents to be produced?
The deduction u/s 80EE for FY 18-19 is only available for the original loan sanctioned in FY 2016-17 and not for the new loan. Whether you have just switched the bank or is it a new loan?
Yes, I have switched the bank. the loan which I took from HDFC is for same property & to close my previous loan from ICICI.
Since the essence of the loan is same you can claim deduction of the repayment of loan
I HAVE TAKEN A HOME LOAN OF 4500000 FROM SBI AND I AM FIRST TIME HOME BUYER. HOW CAN I TAKE THE REBATE IN ITR FOR PRINCIPLE AMOUNT AS WELL AS INTEREST.
Claim house loan interest amount under income from house property (max 200000/- will be allowed in case of self-occupied property). Principle repayment amount is to be claimed as deduction u/s 80C.
As you say “Principle repayment amount is to be claimed as deduction u/s 80C.” however there is no option in the website to claim.
You will get a column to enter deductions u/s 80C in your ITR form. Please check.
Dear Sir/madam
I have purchased a new house and had a house loan of amount Rs 26 lakh (LIC-HFL), which was sanctioned on 26 March 2016. In Addition to this
I have taken another loan Rs 6 lakh from the same company, which was sanctioned on August 2017.
Q1 Can I get the benefit of Rs 50000/- under Section 80EE, However, In 80EE it is indicated that the benefit of 80EE can be taken by those who have been sanctioned Loan between 01.04.2016 to 31.03.2017 ??
Q2 Whether I can get the tax benefit from both the loan or not?
Ans 1- No you cannot claim deduction u/s 80EE.
Ans 2- You can claim interest deduction under “income from house property” for the loan amount.
I am paying 2,27,000 interest for my home loan. I have claimed 200000 under 24(b). Can I claim remaining amount under 80EE? My home loan approved on 22 Mar 2017.
Yes you can claim deduction u/s 80EE for the remaining amount of 27000/- if all other conditions of 80EE are also fulfilled.
I have purchased a house and taken the loan of amount Rs 26 Lakhs (LIC-HFL), which was sanctioned on 26 March 2016 and another loan of Rs 6 lakhs (LIC-HFL, sanctioned in August 2017) also taken for the furnishing of my same house. Can I get the benefit of Rs 50000/- from both the loan. But in section 80 EE, it has been stated that this benefit is only applicable to Loan sanctioned between 01.04.2016 to 31.03.2017. But in my case, both loans are not in between
No, you cannot take benefit of deduction u/s 80EE.
Hi,
I do the job in Pune and stay in a rented flat here with my husband.
I have a house property in my hometown on my name and show the rent received in “income from house property”. Home loan is over for this property in Feb 2017.
In March 2016, I and my husband have jointly bought another property in Pune for which we got possession in March 2018. We are repaying the home loan on this property. (This flat is rented out in April 2018).
Please let me know how can I take maximum tax benefit? I am confused because I read that if one owns 2 houses, one is to be shown as self-occupied and the other as rented out.
In my case, I own two houses but stay in the rented house. So I also want to claim HRA.
Regards
You cannot take H.R.A. exemption benefit if in that city you have your own house too. You need to show one house as self-occupied and other will deemed to be let out.
Very good article.
You have rightly mentioned that from AY2018-19, loss from house property allowed to be set off from other income is limited to 2,00,000rs.
Does this limitation apply for individual owning multiple flats?
Ex: I own (100%) a building with 12 flats. I have paid 6,00,000rs more interest than 70% of rent received. I have another flat on which I have paid 4,00,000rs more interest than 705 of rent received. I cant claim more than the Rs.2,00,000 loss from both of the above property?
Yes, the 200000/- set off limit is for losses under “income from house property” head which covers losses of all the house properties.
I have purchased a house property in April 2015, but the actual possession and the consideration were settled in 2013 itself, should I consider the date of purchases as 2015 or 2013 itself?
Since both possession and payment has been made in 2013, the purchase will be deemed to be in the year 2013.
I purchased an apartment in December 2012. Construction is still in progress. I pay EMI and the total EMI paid for FY17-18 is 170199. Can I claim this amount of 170199 under any deduction head while filing ITR for the AY18-19?
Deduction w.r.t. interest is allowed only when the construction is completed. You can claim pre-construction period interest in 5 equal installments beginning from the F.Y. in which the construction is completed. However principal amount repayment can be claimed as deduction u/s 80C
Please collect interest paid certificate from bank, interest will claim in section 24 and principal will claim in 80c
I partially (25% or one living unit) constructed my plot in 2014-15 with my own savings and got an occupation certificate in 2015. I did not rent it out and did not live there. To construct the remaining portion of the house, I took a home loan in August 2017 for Rs 11 lakh from the bank and I am paying EMI since Sept 2017 for Rs 11000/-. Please tell tax implications.
Thanks.
Repayment of the principal amount is to be claimed as the deduction under section 80C. Interest amount can be claimed as deduction depending on whether the property is shown as self-occupied or let out. In the first case, actual interest or Rs. 200000/- whichever is lower is allowed. In the latter case, you can claim the actual amount of interest fully.
Sir, thanks for the reply. What should I write under income from house property in ITR form? Thanks.
I have purchased a flat during FY2014-15 against a loan of 26,00,000/-. I have never claimed against the 80EE section. Am I eligible for the same? If yes, can I claim for the previous years also?
For claiming deduction u/s 80EE, the loan must be sanctioned in FY 2016-17. So you are not eligible for this deduction.
I am paid Rs. 58167/- as interest on the Home loan. But as per return form in 80EE I am only getting 50000/- reduction. How can I claim balance 8167/-
Balance interest can be claimed in income from house property by showing it as a deduction.
Respected madam,
My wife is a govt. Teacher, She has purchased her first house for own use @ 1000000/- on bank loan as on August 2014. The entire loan will be paid within 20 yrs. The loan and interest instalment comes to rs. 10200 /- p.m.
How much interest and instalment amount can be exempted totally per year from her annual income.
Pls. Reply and oblige
Thanking you!
Sunil
Interest will be allowed upto a maximum of Rs. 200000/- (since it is a self occupied property). Principal repayment is allowed upto max of Rs. 150000 (80C deduction)
Hi,
For the FY: 2017-18 my home loan’s remaining interest calculation (after all deductions) is coming out to be < 2lacs.
How can I carry forward the remaining interest from previous years? Should I just increase the Interest component coz currently I have just mentioned FY: 17-18 interest only for the calculation.
Please let me know.
Losses related to previous years are required to be shown in schedule BFLA & CFL.
Hi,
Thanks for your inputs. Are these schedule part of ITR1? I am not seeing anything over there. Also last year I didn’t mention anything like that so how can I use BFLA?
Regards
Anurag
Dear friend, for FY17-18
My home loan interest is 3Lakh50thousand, 2 L is deducted from Annual salary. Met 80C with other investments.
How can I claim the excess tax paid: 1.5 L
Have Let out property for rent with income of of 72K. Please guide
Your rental income net of 30% standard deduction comes to 50400/-. Firstly you will get set-off of home loan interest from this net income.
Remain interested comes to Rs. 296000/- (350000-50400) Then, Rs. 200000/- will be set off from salary income. Remaining interest will be carried forward to the next assessment year.
Please note that if the home loan interest is for self-occupied property, then only Rs. 200000/- deduction will be available. In this case Rs. 149600/- will be set off from salary income and no amount will be carried forward.
Hi,
I have taken a home loan for an under construction property valued at less than 50lac in May 2016. and paying the PEMI Interest. Can I claim under 80EE
PLEASE ADVISE
I buy a new resident flat in May 2016 by a Home loan of 13.50 Lacs which was approved by the bank in July 2016. The above said flat is under construction. Till the date, It ‘s not complete and not handover by the builder. I pay EMI to the bank for above property from Aug-Sept 2016.
Tax certificate issued by them says “This Certificate is issued in order to enable you to claim the deduction from Taxable Income under SECTION 24(b) of the INCOME-TAX ACT, 1961.” The break-up of the amount into Principal and Interest is PRINCIPAL COMPONENT Rs. 13,020.00 and INTEREST COMPONENT Rs. 77,319.00 and PRE-EMI INTEREST Rs. 2,673.00.
My question is:-
a. May I get the tax deduction from the home loan? Which amount is taxable i.e. principle or interest? How to claim it?
b. May I get any tax deduction or benefit from 80EE and Sec-24? If Yes, how I claim it?
c. Which ITR form is suitable for this?
I bought a plot in Hyderabad, HMDA Approved and I was given HOUSING LOAN from INDIA BULLS for Rs 8,19,060/-
Tax certificate issued by them says I can avail tax benefit u/s 24(b) & 80c(2)(xviii). Price Component 40,423/- and Int comp 71,275/-
I neither built any house nor started building a home. I paid tax from salary without considering
Am I eligible for Tax benefit or not? If yes guide me in e-filing income tax.
Deduction u/s 24 & 80C is available only after the house property constructed/acquired.
Hi,
I had 2 home loan as below:
First home – Self occupied and I paid home loan interest from 1999 (jointly with my wife).
I am an owner of this flat jointly with my wife.
Second home- Purchased on 2017 March. My father-in-law is the owner of this flat. But I have taken loan jointly with my wife.
Am I avail HBL interest benefit for Income tax Exemption for the second home.
Can you please tell me which ITR, I have to fill? Also how much loan interest I can claim? HDFC give me an interest certificate as a first borrower.
You cannot claim house loan interest for the property which is not owned by you. Interest related to first home can be claimed according to your share. ITR-1/4 will be applicable if there is income from only one house property. Otherwise, ITR-2/3 will be applicable.
My Home Loan was sanctioned in Financial Year 2017 (Jun-17).
Am I eligible to claim 50,000 Rs in 80EE?
For deduction u/s 80EE, the home loan should be sanctioned between April 2016 to March 2017.
hi,
home loan is taken for 1st home under construction,
loan approved on may 2017
will it be eligible for 80ee
all other criteria fulfilled
As the loan has been sanctioned after the 31st March 2017, you can’t claim deduction u/s 80EE.
DEAR SIR/MADAM
THERE IS TOTAL OUTSTANDING OF MY HOME LOAN OF RS. 1180,000/-
Instalment AMOUNT IS RS. 25000/- PER MONTH
I PAID UP FULL LOAN BY FINAL PAYMENT OF RS. 1180,000/-
THERE IS PRINCIPAL AMOUNT OF RS. 1130,000/-
AND INTEREST AMOUNT OF RS. 50,000/-
NOW HOW MUCH PRINCIPAL AND INTEREST I SHOULD CLAIM IN AY 2018-19
Principal amount is claimed as 80C restricted to maximum Rs. 150000/-. Interest amount can be claimed fully under section 24 (under income from house property).
Dear Sir/ Ma’am,
I bought a flat in 2014 and taken home loan Rs. 20,00,000.00 from OBC. I am paying it on time regularly. My accountant fills return for me every year. I gave him the detail of home loan for last year (Assessment Year 2017-18) the interest I have paid was Rs. 1,87,009. He showed it under section CYLA (House property loss of the current year set off). And ITR officer made it nil as the loss. What should I do now??? I am a consultant teacher. Please help me if something can be done.
Thank you and regards
Where to show in ITR 1 section 80ee amount, because there Is no section 80ee in ITR 1 while e filing. Please advise which head to be use to input 50,000?
Please check department’s utility for ITR-1. 80EE section is provided in deductions.
Hello,
Home Loan Principal Part of 1,50,000 to be claimed under 80C – Under which heading does this needs to be claimed? As in the new ITR 1 the House Loan Principal is not listed at all. Please assist.
Thanks
In ITR-1 utility, there is a single common row to enter 80C deductions. You need to enter consolidated deductions in that row only.
We are constructing one floor more & took loan around 14 lac. Bank gave us 2 lac in March 2018 & instalment starts from April 2018, myself and brother open joint account for that, because property belongs both of us.
What should I do now, while filling tax return?
You can claim the deduction for interest paid u/s 24(b) for improvement in house property.
My question is, Amount cr in my account by the bank in March 2018 & Interest paid by me to the bank in April 2018.
so I have to mention this 24(b) in this 2017-18 or 2018-19 financial year?
If the period of which interest is paid in April, falls under FY 2017-18 then you need to show under 2017-18.
both brother claim half half interest in itr 1 under section 80c
My loan for 30 Lakh was sanctioned in FY 2015-16. However, disbursement was in instalments with 28 Lakh disbursement after April 2016. Cost of the house is 36 Lakh. This is my first house. Possession and Registration were done in November 2017. Keeping in mind the disbursement schedule, will 80EE be applicable for amount released after April 2016 though sanctioned prior.
Under section 80EE, it is specifically mentioned that the sanction date should fall in FY 2016-17. Since this condition is not fulfilled in your case, you cannot claim deduction under this section.
I have taken a Home loan 20L for purchasing a Flat in Feb 2017. Can I avail the deductions?
Sir,
I have taken a Home loan 13L for purchasing a Flat in Feb 2014. Can I avail the deductions Under section 80EE in addition to 2L.
As loan has not been sanctioned between April 2016 to March 2017, you can’t avail deduction u/s 80EE.
My Mom is a housewife who has started earning income from this FY of approx Rs 60000/- per annum (Rs 5000/-per month) from private school tuition. She has registered with Income Tax department this year and will be filing the return. She has also earned LTCG this FY by selling off a joint property held along with my dad. My query is, Will the LTCG received be added along with her other income and taxed as per Tax slab with exemptions up to 2.5 lacs being in the lowest bracket of income OR whether the LTCG received taxed separately @20% (after cost indexation); without taking into consideration of her income tax bracket. Regards
You will get the slab benefit in case of long-term capital gain. The balance LTCG (after adjusting it with slab amount) will be taxed at 20%.
1. We (self and spouse) sold off our joint property for Rs 29 lacs in Sep 2017. The same was purchased by us in the year 2004-05 for Rs 8.3 Lacs.
2. We jointly purchased a new property worth Rs 57 lacs in Mar 2018. This property was under construction since 2014 for which we were paying EMI since then and finally took possession in Mar 2018. The last 7-8 EMIs and expenses on registration, stamp paper etc were paid out of the amount we got from the previous sale mentioned in para 1 above.
3. Can I take the benefit of exemption from paying Long Term Capital Gain (LTCG) for the sold property since I invested the amount in purchasing a new property? The new property sale deed was made in Mar 2018 (within one year of selling the old property) on taking possession.
An early reply, please.
As you have purchased a new house property within 1 year, so you can claim exemption from LTCG arose on a sale of the old property.
Dear Sir/Madam
Let me thank you for this highly impressible blog site to clear doubts regarding tax saving.
I purchased a house site (plot) for Rs. 22,00,000 in FY 2016-2017 without taking any loan. I constructed the house on this plot in FY 2017-2018 and the house was completed in the month of Dec 2017. I borrowed home loan Rs 25,00,000 from SBI for the construction submitting an estimate of construction cost Rs 30,70,500 from an engineer. The loan was sanctioned in January 2017. Since I am a public servant hence I intimated to the employer and also filed immovable property return declaring the transaction as follows:
Purchase of house site for Rs 22,00,000 transaction in the year 2016 – 2017.
Construction of house at cost Rs 32,00,000 (Rs 25,00,000 from loan + Rs 7,00,000 from own saving) transaction in the year 2017 – 2018.
I want to know, How the value of residential house property is calculated for the purpose of income tax benefits?
I am first-time house buyer and did not have any property on the date of sanction of loan. The loan amount is less than 35,00,000 and the loan was sanctioned between 1-April 2016 – 31-March 2017.
Am I eligible to claim the deduction of Rs 50,000 for tax benefit under section 80EE?
As you have taken the loan for construction of house property and as per section 80EE, the deduction is allowed on loan, taken for purchase of property so you cannot avail deduction.
I availed housing loan in Aug 2016, completed construction in July 2017. The paid interest of Rs-70000/- for the year 2016-17 and interest of Rs-3,90,000/- for the year 2017-18. I have let it out on rent and received the rent of Rs-66000 for the year 2017-18.
I have two questions for filing ITR-1 for the AY 2018-19.
1. How to avail pre-construction interest benefit for the amount Rs-70000/- I paid for the year 2016-17.
2. Can I get full benefit on the interest paid for the year 2017-18 (Rs 3,90,000)? I tried filling the amount in ITR-1, after entering all the details under income details but income chargeable under house property shows only (-2,00,000/-).
1) Pre-construction interest will be allowed in 5 equal installments beginning from the year in which construction has been completed.
2) As per the latest amendments, maximum interest can be set off under house property will be Rs. 200000/-, balance deduction will be carry forward for next years. Also you can avail excess deduction of Rs. 50000 u/s 80EE.
I had taken a loan for Purchase of Flat in 2014, and claimed the interest deduction of Rs. 2 lacs in 14-15, 15-16, 16-17 and 17-18 (Total Interest paid is more than 14 Lacs in 4 years). The possession is still not taken and is expected in Dec-2019. From the online search, I am now aware that I could not claim this deduction before possession, and it has been taken incorrectly.
My queries:-
1. How many deductions I could have actually claimed? (Is it 30000/- per year)
2. How can I rectify claims already made
3. How to claim the deduction in 19-20(when the possession will be done)
Thank you.
Interest prior to the possession of house property has to be claimed in five equal instalments beginning from the F.Y. in which the property is actually possessed.
You can file rectification u/s 154 for the ITR’s already filed and processed at CPC. From FY 2019-20, ensure to take correct claim of prior period interest in five equal instalments.
Sir,
At the time of giving proof of investment to my employer as per provisional certificate of loan principal loan payment amount is 90,551/- which is reflected in Form No.16. But now as per final certificate, it is Rs.1,10,846. Can I rectify this amount while filing the return of income? Also, can I claim mu HDFC mutual fund investment while filing ITR which is not reflected in my Form No.16? May I upload copies of these investments while filing the return of income.
Thanks
Yes, you can claim additional 80C deductions while filing your ITR. No need to upload proofs of same.
I m salaried employee. In which column of ITR-1, tax exemption of Rs 2 lakh under Rule 24 is to be entered.
Hi,
If you have loss from house property, you should enter Negative figure in the “Income From House Property”.
Regards,
Abhiram M S
CA Student
I have 2 commercial let out property, total interest paid is Rs.450000/- then what will be interesting allowable u/s 24b for FY 2017-18.
As per amendment total interest from each house property can be allowed up to Rs. 200000.
Hi,
I had 2 home loan as below:
First home – Self occupied and I paid home loan interest Rs. 263844 in the Financial year: 2017-18
Second home- Parents occupied and I paid loan interest Rs. 110000 in the Financial year: 2017-18
Can you please tell me which ITR, I have to fill? Also how much loan interest I can claim?
ITR-2 will be filed if you do not have any business income. For self-occupied property, you can claim the maximum interest of Rs. 200000/-. The second home will be deemed to be let out and you can claim the whole of interest on it.
I took a loan in 2012 and possession in 2016. Can the pre-EMI interest be claimed for next 5 years and if it also has a limit of 2 lakhs? Does this 2 lakh combined with the deduction of interest I am paying for the current financial year?
Yes, you can claim a deduction of the pre-construction period interest. it will be allowed in 5 equal instalments beginning from the year in which construction is completed or possession is taken. If you have not claimed the deduction in the ay 2017-18 for the pre-construction period, then you can claim the remaining balance of 4/5th of the interest amount in the succeeding years. The total deduction that can be claimed as a deduction is limited to Rs. 200000 from AY 2018-19 including the pre-construction period interest.
Hi I have a two-flat in the different location, both the property are under the loan from different banks, I have paid Rs 725844 against one loan and Rs 225000/- against the second loan, both the property are rented out, my query is
Can I claim Total interest paid against both the loan net of Rental Income, I am salaried class and falls under 30% slab
Thanks in Advance
Pankaj
You have to provide details property wise i.e. for each property you have to declare rental income and then can claim interest deduction against that.
I have paid interest on housing during the year 2017-2018, but my employer gave the only rebate for 30000, rest 85000 not rebated, now how and in which column I will put this rest interest amount to get the benefit of interest in ITR 1
Deduction of actual home loan interest paid (subject to a maximum of Rs. 2 lakh) is available if house construction completed within 5 years from the end of the financial year in which loan is taken. If construction of house not completed within five years then Rs. 30,000 is tax exempt. You will get the exemption accordingly.
Housing loan from Dec. 2014 in FY 2017-18
Intrest debited during the year 2017-18 — 1,59,420
Repayment towards Principal——- 19,335
Repayment towards Charges for transfer of loan from base rate to MCLR——- 10,845
Can I claim income tax rebate on the full amount paid against charges in the financial year 2017-18?
Deduction regarding principal and interest only to be eligible.
Question:
Property Offer of Possession Date: Aug 2017
Loan commencement date: 30 Dec 2017
Property Registration Date: 17 Mar 2017
Can I claim income tax rebate on the full amount paid against PreEMI in the financial year 2017-18? Or I will have to claim it in subsequent 5 financial years (1/5 every financial year)?
As pre-construction period starts from the date of loan and end till the end of last FY in which the construction or acquisition takes place, as in your case possession and loan sanction falls in the same year, so there would be no pre-construction period interest. All the amount of interest will be eligible to be deducted in the same FY.
I too had the same understanding but the payroll processor of my company has considered on the 1/5th amount for tax exemption. Before taking it up with them, I wanted to be doubly sure.
Thanks for your reply.
Yes, that will not be considered as pre-construction interest.
Can you please provide me any reference of this rule/act/section from the government/Income Tax website.
You can read section 24(b) of income tax act.
Hi, I have purchased a flat recently in the month of 27th Match 2018. The loan was 27.5 Lakhs and the property value was 30 Lakhs, Can I claim 50K under 80EE?
As deduction u/s 80EE is only allowed if the loan was sanctioned during the FY 2016-17, so you can’t claim deduction under this section.
Hi. Regarding section 80EE “The value of the property should be less than 50 lakhs” – The falt I purchased is 62 lakhs including tax. Excluding tax, it comes below 50lakhs. Am I eligible?
As tax paid by you on purchasing of flat will not be available as ITC to you, so that also has to be part of your cost, so 80EE will not be taxable.
I took a loan of 50Lakh on a property I purchased and can only claim the additional benefit of 50,000 if my loan amount is less than 35Lakh.
Now my question is if I do an advance payment of 15Lakh today to reduce the loan amount to 35Lakh, would it make me eligible for the additional benefit of 50,000 under section 80EE?
Thank you in advance!
As the limit of original loan has to be checked at the time of sanction so any reschedulement of the loan will not change the essence of the loan, so deduction will not be allowed u/s 80EE.
I have taken a loan of 23 lakhs for residential plot and construction. The loan was sanctioned on 9th Nov 2017. I have paid around 48K for interest in last FY. Can I claim 48K under 80EE in FY 18-19?
As deduction u/s 80EE is only allowed if the loan was sanctioned during the FY 2016-17, so you can’t claim deduction under this section.
HI, I have purchased a home recently in the month of Feb (2018). The loan was 38Lakhs and the property value was 47 Lakhs, Can I claim 50K under 80EE?
As your loan amount exceeded limit of 35 lacs, you are not eligible to claim deduction u/s 80EE
I took a home loan in September 2016. The possession certificate was received on 20 Mar 2018. The interest paid by me on this loan was 76000/- in FY 16-17 and 120000 /- in FY 17-18.
I’m filing ITR for FY 16-17 on 29 Mar 18. While filing ITR for FY 16-17 (AY17-18) will I get Rs 76000 as the deduction on taxable income (interest paid in FY 16-17)…Or should 20% of it be included in 120000 for deduction in ITR of FY 17-18?
As possession is transferred in FY 2017-18, so interest for the prior period will be allowed in 5 equal annual instalments from the FY 2017-18.
very informative
I have owned a flat by the home loan of rain 500000. I borrowed money from the nationalised bank of rain 1950000 for purchasing an another flat.
Can I get interested amount exemptions in tax calculation?
You can claim exemption u/s 24b of house property head by claiming the house as a self-occupied for one property and the other property will be treated as deemed let out and then you can claim the interest deduction separately.
Sir,
My home loan, for Rs 20 Lakhs, was disbursed on Nov 2016. The interest paid so far is Rs 1.38 L. I have put this amount under 24b. My property value is less than 50L and this is my first home. Can I claim Rs 50000 under 80EE in addition to this 1.38L?
Thanks and Regards
Venugopal
Hi Saginfotech Team,
Have purchased a flat in May 2015 for Rs. 35 Lacs and I recently come to know about 80EE, so can I start to avail the deduction from this year at least.
Deduction u/s 80 EE is only available if the loan is sanctioned between 01/04/2016 to 31/07/2017 and the amount of loan is up to 50 lacs.
I have sanctioned a home loan in January 2010 on a construction-linked plan. the first disbursement was given in January 2010 itself. From time to time, as per the demand of the builder, the home loan was disbursed in several tranches. The remaining final amount was released in October 2017 and the possession of the house was given in December 2017. Am I eligible for claiming benefits under sec 24 of the IT Act?
The deduction can be claimed in the AY 2018-19 for interest u/s 24 and u/s 80C for the principal amount for payment made after possession of the house. Also, the house must be constructed within 5 years from the date of sanction of loan otherwise the deduction for interest will be restricted to Rs.30000. Interest for the period prior to construction can be claimed in 5 years beginning from the A.Y. in which construction is completed. Prior period principal payment cannot be claimed as a deduction.
Hello Sir, I have taken a home loan in Feb 2018 of 34 Lakhs. The value of the property (residential Independent house) is 58 lakhs. And I am the first time home loan buyer. Can I claim additional 50000/- deduction under 80EE from FY-17-18. But I have paid 48 k as interest. How will be additional 50000 calculations?
Primary conditions for claiming the deduction is that the loan amount should be less than 35 lacs and the value of the property would be less than 50 lacs, as your property value is more than limit, you will not be eligible for deduction u/s 80EE.
VASUDEVAN.D
”
January 30, 2018, at 10:07 am
Sir, I have purchased a plot on Apr 17 and the construction is going on, which will be completed in Jun18.Loan sanctioned is Rs.34.75 Lacs.on 25.05.17.
1. I had one property before and sold the same on 05.05.17, well before the sanction of this loan, by fulfilling conditions like not owning a house at the time of buying new property and also less than 34.75 lacs. Will I able to get a deduction of Rs.50000/- under section 80EE this fy 2017-18: ay:2018-19.
2. As said earlier, l will get possession of this property by June’18 only. But, I have started paying EMI from jul17 onwards, which works out to Rs.1,82,975/-. Can I start my 1/5th of construction interest, i.e., Rs.,36,000/- from this AY 2018-19: FY:2017-18.u/s24.”
3. Since I have not occupied and taken only 1/5th of interest, will I be able to take the benefit of HRA for the FY-2017-18
Request your help in reply, please.
Sir, interest paid on more than one housing loan is allowable as the deduction under income tax of an individual. I have three home loans taken from SBI interest paid on three loans can be claimed as a deduction.
You can claim a deduction for each home loan separately, it will not be clubbed and allowed from only one single house property.
Hello,
I have bought a flat on 22/Jul/2015 from LIC for an amount of INR 39,00,000. During the month of Feb-2017, I have repaid the outstanding housing Loan value and have taken a new Loan from Bajaj Finance for INR 46,00,000 [INR 39,00,000 (New Loan)+ INR7,00,000 (Top Up)]. New Housing loan from Bajaj was sanctioned on 28/Feb/2017 for the same house property. I would like to check if I can claim the exemption under Sec 80C & Sec 24 for Interest and Principal.
The reason for my question is, I see a checkbox “I will not transfer any House Property mentioned above before the expiry of five years from the end of the financial year in which possession of such house property is obtained by me.” Would this statement deter me from claiming an exemption for obtaining the exemption under Sec 80C & Sec 24 for Interest and Principal?
As you have not sold the concerned house property before 5 years, you can claim the deductions.
I have purchased the resale property hence I have certified a copy of the registry, not a possession letter. Can I get the benefit of income tax for home loan interest & principal on behalf of the registry?
Deduction of interest and principal is allowed on ownership basis, so as you have a registry in your name completed, you can claim such deduction.
Sir, I have taken a Home loan from HDFC bank in 2014. The cost of the apartment is 1.24 cr and the sanctioned loan amount was 83 lakhs. still, it is under construction. whether I can avail any tax benefit, for the interest paid or for my principal amount?
You can only claim deduction of interest and principal from construction completion year onwards u/s 24B, 80C and 80EE
I purchased a 2BHK flat in July 2015 and took 27 lakhs loan in July 2015. To get remaining last 5% amount, Builder had sent a mail on Feb 2018 saying please “pay to remain 5% and take your possession”. I paid the remaining amount in March 2017. In July I got the registry papers but the flat was not in the position to be shifted. So I submitted rent receipts to my office. Now I will be shifting in my flat on 23rd Jan 2018. So my question is –
1. Can I take tax rebate on Principle (80C) as well as Interest (24B) in this financial year?
2. At the time of the loan, my wife was not employed so I took the loan in my name and EMI is also deducting from my salary account. In the property, I and my wife both are the applicant.
Hence my questions are –
a). Can my wife also can avail tax rebate as I will avail for this financial year?
b). We paid stamp duty also but that also deducted from my account. If she transfers same amount to my account, Can she be able to mention that also in 80C?
Please help me to find the answers of these questions.
Many Thanks in Advance.
1) As legally possession of flat has been transferred in July 2017, so from F.Y. 2017-18 you can claim the deduction of interest payment and principal payment.
2) a) As the loan is in your name, so your wife cannot claim the deduction, and also you can avail the deduction up to the income related to your share in-house property.
b) As your wife also a co-owner in property and she has also paid the expenses, she can claim a deduction for such expenses.
2)a. I just checked the lease deeds papers and did not found the share in %. Everywhere I and my wife signed together. My wife is the first applicant and I am co-applicant. In this case what will be my share in-house property and how much tax exemption can I take in 80C and 24b?
The loan is in both my and wife name (signed the papers together) but EMI is deducting from my account only. Still, she will not be able to take tax benefits?
Many thanks for your amazing and quick help.
If both of you are co-owners then % of share have to be there, so you have to first check that are you a co-owner or a nominee.
I have taken a loan of 30 lakhs from sbi,flat price under 50lakhs, no previous home or flat loan sanctioned 19/04/2017. Am I eligible under 80EE IN FY 2018/2019 ?
The condition to claim deduction u/s 80EE is that loan must be sanctioned between 01/04/2016 to 31/03/2017. No deduction can be claimed in your case.
Hi
I’ve taken ready to move property in Feb’17 amounting 69,20,00 (gross) and my loan was approved in Aug’17 of INR 46,00,000. I am aware that property value should be less or equal to 50 lakhs and loan amount should be less than or equal to 35 lakhs. Now my question is; is there any way I can claim any amount/savings/rebate in FY17-18 or FY18-19?
Thanks
For claiming deduction u/s 80EE, the loan should be sanctioned between 01/04/2016 to 31/03/2017. As your loan is sanctioned on Aug 2017 so you can’t claim deduction u/s 80EE. But you can claim interest deduction u/s 24b by showing it under house property head.
Hello,
I have purchased a2BHK under construction house in 2013 and loan too got sanctioned for 30L in 2013. Later in 2017, I have upgraded 2BHK to 3BHK flat under the same property. During the upgrade, the bank has opened a new home loan account in 2016 and transferred the balance of 24k from old loan account to new.
I have received the possession in Jan2018 and hence I will claim the tax benefit starting this year. For F.Y. 2017-18, interest paid is 1.93 Lakhs and Pre-construction interest (old home loan account) is 3Lakhs
My question is:
1. Can I claim the pre-construction interest benefit knowing that those interest bear to old account no?
2. Can I also claim the additional benefit of 50K because my property value is less than 50L and loan sanctioned is less than 30L?
1. Yes, you can claim the deduction of pre-construction interest in 5 instalments from the A.Y. in which construction completed.
2. Deduction of Rs. 50000/- under Section 80EE is applicable on loans taken for purchase of residential property, as you have constructed your 2BHK flat to 3BHK flat, you are not eligible for exemption
I’ve taken an apartment in a different city and its vacant for the Financial Year 2017-2018. Should I file it under Income from House Property even though it was vacant?
If there is no income arises during the F.Y. and you not have taken any loan on such property, you not need to disclose the same in return for F.Y. 2017-18.
Hello,
Have taken a loan of Rs. 29 lacs in the year 2013-14 for the purchase of the ready new flat in Mumbai. Paid interest every year Rs. 2.8 lacs, 2.6 lacs, 2.4 lacs, 2.3 lacs till this financial year. As per tax laws, also claimed tax exemption up to a limit of Rs. 1.5 or 2.0 lacs as applicable every year. This year, I have closed the loan and no interest payment made. In this case, can I claim tax exemption of excessively paid interest (on accrual basis) i.e. 2.8 (interest)-1.5(exemption)+2.6-1.5+2.4-2+2.3-2 = 3.1 lacs accrued interest over 5 years. Am I eligible to claim this accrued interest during this financial year?
House property loss can be carried forward to next 7 A.Y. from the A.Y. in which that loss incurred.
Hello Sir,
I applied for the home loan and got pre-approval in Oct-2016 based on salary. But finalizing the flat in February-2017 and loan got disbursed in February-2017 for 25.5 lakhs. After that, i applied home improvement loan for woodwork for 6 lakhs. In last year IT I haven’t submitted any of these things. Can you please suggest what all benefits I can avail with respect to income tax (80C, 80EE, 24b) and PMAJ-MIG2. If I need to show 80EE for last year but my interest amount is only around 29000Rs, I need to show only this amount or is it possible to show for 50k considering this year? Is home improvement loan is eligible to show for IT?
Thanks
Deduction for the interest u/s 24b and principal u/s 80c is allowed only from the year in which construction is completed/possession is taken. deduction of interest for the period prior to the date of construction/possession is allowed in five equal instalments beginning from the year in which construction is completed or possession is taken. but such deduction is not allowed for the principal amount. it will only be allowed from the year in which construction is completed. for claiming deduction under 80EE, specific conditions have to meet. The 80ee deduction is over and above 24b.
This is with reference to the Home Loan on my second flat purchased. Received its possession on 21st November 2017.
Interest on Home Loan paid during Prior Period is as follows:
Financial Year / Interest on Home Loan (Rs.)
FY 2015-16 / Rs 38,546.08
FY 2016-17 / Rs 2,45,162.64
TOTAL – Rs 2,83,708.72
20% OF TOTAL – Rs 56,741.74
Principle and Interest on Home Loan paid during the current financial year in which I got the possession of the second flat is as follows:
Financial Year / Principle on Home Loan (Rs.) / Interest on Home Loan (Rs.)
FY 2017-18 / Rs 1,12,422.81 / Rs 2,33,684.19
If I show this second flat as Let-out House Property, then please advice on:
What should be the Interest amount that I show on Housing Loan?
Is it Rs. 2,33,684.19 (FY 2017-18) + Rs. 56,741.74 (20% of Prior Period) = Rs. 2,90,425.93
Or Is it restricted to Rs 2 lakhs
What should be the Principle amount that I show on Housing Loan?
Is it Rs. 1,12,422.81 (Full FY 2017-18)
Or is it for the period (Dec 2017 – Mar 2018) post possession
Normal rent for a 2 BHK at the complex is Rs. 7,000 to Rs. 7,500. How much out of this amount should I show as notional rent amount per month?
How many months notional rent amount do I need to show?
Is it for the full FY 2017-18
Or is it only for the period (Dec 2017 – Mar 2018) after receiving possession
What is the Property Tax Paid amount that I need to show?
The builder will be giving the money for the property tax of 1 year, which I need to go and pay to the Gram Panchayat. Have not received the money yet.
What is the Repairs amount that I need to show?
Would request you to kindly advise me on the above-mentioned queries.
For F.Y. 2017-18, a deduction for the interest is limited to Rs.2,00,0000 both in case of self-occupied property and let out property. it also includes preconstruction period interest (1/5 of the total amount of interest paid during the pre-construction). so interest deduction will be allowed only up to Rs. 2,00,000 for the F.Y. 2017-18. Also, the deduction for the principal amount is allowed only from the period from which the possession is taken/ construction is completed. so the principal deduction is allowed only for the period after 21st Nov 2017.
Deduction of house tax will be allowed only if paid by the landlord.
Hi Madam,
Is from this year the total interest on the home loan from both self-occupied and let out capped at 2L or it’s separate 2L for self-occupied and 2L for let out.
Thanks,
Shubhojit
From AY 2018-19 the benefit of home loan interest for both self-occupied and let out house will be restricted to 2 lacs only. It is not separate.
Dear Sir,
I owned a flat earlier and sold the same in May’2017. Now, I have bought a land on 15th July-2017 and the construction is going on. It will be completed within June’2018.
What I want to know is whether I can claim the interest of Rs.200000/- under sec.24, and also the first-time buyer since I don’t have any house u/s/80EE, the property sanction loan is 34.5 lacs and the value of the property is less than 50 lacs.
You can claim the deduction of interest amount only when the construction is completed. Interest for the period prior to the date of construction is allowed in five equal instalments from the year in which construction is completed.
Sir, I have purchased a plot on Apr 17 and the construction is going on, which will be completed in Jun18.Loan sanctioned is Rs.34.75 Lacs.on 25.05.17.
1. I had one property before and sold the same on 05.05.17, well before the sanction of this loan, by fulfilling conditions like not owning a house at the time of buying new property and also less than 34.75 lacs. Will I able to get a deduction of Rs.50000/- under section 80EE this fy 2017-18: ay:2018-19.
2. As said earlier, l will get possession of this property by June’18 only. But, I have started paying EMI from jul17 onwards, which works out to Rs.1,82,975/-. Can I start my 1/5th of construction interest, i.e.,Rs.,36,000/- from this AY 2018-19:FY:2017-18.u/s24.
Request your help in reply, please.
1) The loan taken between 01/04/2016 to 31/03/2017 are only eligible for 80EE.
2) As possession will be transferred in F.Y. 2017-18, so deduction u/s 24b will only be eligible from F.Y. 2017-18.
I have taken a personal loan and construct my home can I still claim the deduction as the loan was not house loan because I cant get it because of locality problem.
i have taken personal loan and used such amount for my home can i claim deduction under 80ee
The deduction is not allowed for personal loan taken for construction of residential house property.
I have taken a home loan but I registered the property for my mother’s name only, can I avail tax rebate?
Thanks in advance
As the property is not registered in your name, you cannot avail tax rebate, as the income from such property will be taxed in the hands of your mother.
I purchased resale flat under construction in May 2017. Home loan EMI (Principal + Interest) started from July 2017 as expected possession was in September 2017. Now possession is delayed to July 2018. So I am not able to claim tax benefits for Principal Rs 1.5 lac and Rs. 2 lac this year 2017-18. When I can claim these tax benefits? Do I need to let go 80C benefit this year so that I can claim tax benefits in future against principal paid this year?
You can claim the deduction of the interest and principal in the F.Y. 2018-19 only. Deduction for the interest pertaining to the period prior to date of possession can be claimed as a deduction in five equal installments beginning from the year in which construction is completed or possession is acquired.
If I take a loan on my mother FDR for house construction. Am I eligible?. Tax exemption on interest.
No, since housing loan is not in your name.
I took a loan for construction of the house in own plot. Can I get the 80ee benefit? All other conditions are fulfilled.
If all other conditions are satisfied then you may claim deduction under 80EE.
I took housing loan in January 2013 (FY 2012-13) to buy a flat, the possession of which is due in December 2017 (FY 2017-18). How much interest deduction is applicable in my case in current FY? Whether registry of the flat is the precondition to claim the benefit in current FY. Please help.
No deduction for the interest can be claimed as the housing loan has been taken in the fy 2012-13.
But isn’t it within 5 yrs?
The deduction can be claimed u/s 24 up to Rs. 200000 for the interest amount. No deduction u/s 80EE can be claimed.
Hi, I have one query. Section 80ee is applicable for home value up to 50L. Is home value inclusive of amenities, GST, registration and all or only base price of the property?
Thanks
only interest amount paid on housing loan is allowed as deduction u/s 80EE.
But it says that this deduction is applicable if properly value less than 50L. What do I mean by property value? Complete unit cost including amenities, GST, registration?
It will be inclusive of all the cost.
Hi,
I would like to clarify the “Section 80EE Income Tax Benefit” which is updated in this article.
> However, the same shall not be applicable from FY 2017-18 <- Is this rule came recently?
Because, in the incometaxindia circular, it is mentioned that ".Further, this
benefit of deduction is extended till the repayment of loan continues".
Please see the below paragraph
=============================================
” Reference: http://www.incometaxindia.gov.in/Communications/Circular/Circular03_2017.pdf
…
17.3 In furtherance of the goal of the Government of providing 'Housing For All',
section 80EE of the Income-tax Act has been substituted to incentivise first-home buyers
availing home loans, by providing additional deduction of Rs 50,000 in respect of interest on
loan taken for acquisition of a residential house property from any financial institution. This
incentive has been extended to a house property of a value less than fifty lakhs rupees in
respect of which a loan of an amount not exceeding thirty five lakh rupees has been sanctioned
during the period from the 1st day of April, 2016 to the 31st day of March, 2017.Further, this
benefit of deduction is extended till the repayment of loan continues. This deduction under
section 80EE shall be over and above the deduction of two lakh rupees available under section
24 of the Income tax Act for interest payable on loan taken for self-occupied property
=============================================
In case if the rule is changed for section 80EE, could you please provide the official link where it is announced?
Please help me in clarifying whether this 80EE is applicable only for FY16-17 but not for the consecutive FY.”
Please visit the below link given:
http://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx
As per section 80EE, the deduction in respect of interest on the loan is taken for residential house property not exceeding Rs. 50,000 will be available for A.Y. beginning on the 1st April 2017 and subsequent assessment years.
Thanks for sharing the link
Regards,
Ananda
Hello team.
I have two home loans running. One is self-occupied and other is let out property. How much tax exemption I should get now. 4 Lakhs (2 Lakhs for each loan) or only 2 Lakhs limit together?
Thanks,
Anjan
For self-occupied, you can claim the deduction of Rs. 200000 and for the let out property actual interest paid can be claimed as the deduction. So you can claim the deduction for both.
Hello, i have taken a home loan of 46.50 lakhs which is rented out property.Interest debited to the account is 1.90 lakhs for the FY 2016-17 whereas my repayment is 1.85 lakhs for the 2016-17. Now, how much I can claim Tax Exemption towards the interest on my housing loan 1.90 lakhs or 1.85 lakhs??
An exemption can be claimed only to the extent of actual repayment of interest which is 1.85 in your case.
Hi, Purchased flat in Sep 2014 an possession took in Jul 2017. Want to know the can i show the pre-construction interest in the Assessment year (2018-19) and how many years can claim.
Pre-construction period starts with the date of borrowing upto the 31st march just before the construction completion year.
Hello sir, I took loan to purchase flat in January’2014 and i got the possession of flat in July’2017. In my case, the maximum tax benefit that i can claim on interest paid on home loan will be Rs. 2 Lakh or it will be limited to Rs 30,000/yr assuming both condition the flat is let-out/ Self occupied. Since i acquired the flat in FY 2017-18, will be the relaxation of construction period of property from 3 yrs to 5 yrs is valid in my case?
Thanks & Regards,
Saran
if house is completed within 5 years then interest deduction upto Rs.200000 is allowed.
I want to know if the loan type is of mortgage Loan against the property of Rs 15 lakh. Can we claim in this case
Team,
I’m holding two Home loans from different banks and paying interest of 3.25 Lakhs for each home loans per annum.
Both the properties are in Chennai and each house rented out 7k per month (84k per annum), I’m working in Bangalore and staying for Rent which I’m claiming HRA seperately.
Can you advise that I’m eligible for the max. of 2Lakh tax exemption under ‘Loss from House Property’ ?
or 4K tax exemption.
Dear sir, home loan principle and interest amount shown in form 16/16A upto December 2016 but my interest detected by bank upto march 2017. how many amount fill in ITR 1 for home loan interest( full 12 month /upto December) pls help
You can show amount for full 12 months in ITR. But in case of any query raised by department at time of processing of return then you can show the actual proof of interest amount.
Hello Team,
I have taken a home loan of Rs 22 lacs in May 2014 and this is my first home. I would like to know if I can claim of additional interest (above 2 lacs) while filing the ITR for year FY 2016-2017 / AY 2017-2018?
Appreciate your help and time to clarify. Thanks in advance.
you can claim deduction u/s 80EE for fy 2016-17 only when the loan has been sanctioned between 01.04.2016 to 31.3.2017. so no additional deduction can be claimed.
Thanks team..
But your response to Mr. Arpit Tiwari is different however both the cases are same.
Just curious to know the reason. Is it due to change is FY from 14-15 to 15-16.
Awaiting your response. Thanks in advance.
Hello Sir, I have taken home loan in May 2015 of 25 Lakhs. The value of property is 30Lakhs . Can I claim additional 50000/- deduction under 80EE from FY-16-17, apart form 1.5 lac under 80C, 2 Lacs under 24B, Appreciate your help and time to clarify
Yes you can claim additional deduction under 80 EE.
I have taken my first house/home loan of 32,60,000 in June-2016 and the total value of the house is 41,00,000. I have paid interest of 2,24,259 for financial year 2016-2017. Even though I have submitted the documents in my office, they have considered section 24 (interest 2,00,000) but not section 80EE. So what should I mention under section 80EE while submitting income tax returns. What I mean, do I have to mention 24259 (224259-200000) or 224259? Also, can I get this benefit only for this year or until the loan is repaid?
Thanks in advance.
You can claim balance interest u/s 80EE upto Rs.50000/-
Hello Sir,
I have taken a Home Loan of 2288765/- during December-2011 and started paying EMI from Jan-2012, can i claim additional 50000/- deduction under 80EE from FY-17-18, apart form 1.5lac under 80C, 2 Lacs under 24B, Appreciate your help and time to clarify
Thanks,
Nagaraj Mamedi
This was a new proposal which had been made in Budget 2016-17. The same will be continued in FY 2017-18 / AY 2018-19 too. First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE.
The below criteria has to be met for claiming tax deduction under section 80EE.
Yes please don’t published
Heloo,
I bought flat in year 2014-15 on home loan of 15Lacs in 2014-2015, I taken loan from BOB.
1. I am eligible to claim interest of 50K under 80EE
2. To claim pre interest for under construction property before registry, Which section shall be used for claim and How?
Please specify the financial year for which you want to claim deduction.
Sir, I purchased the flat in the month of may 2017 and I paid pre-EMI I.e INR 128158 from 10 Aug 2016 to10 Jun 2017(before completion of construction) and got possession in July 2017. As per the bank provisional certificate I am gong to pay the principal component INR 38548 and interest I.e INR 161089 from jul 1731 Mar18. this is my second house the first one is on rent and loan being cleared in the year2015. Sir, now I need to know what are the section is applicable for me for rebate. 2. Pre-emi interest come under which sec(before completion). 3. Can I claim the total pre-emi interest in this year .
(before completion of construction)
Hi There,
I bought flat in year 2015-16 on home loan of 25L in Sep-2015, I taken loan from HDFC Ltd and then transferred loan to SBI in year 2016-2017 in Oct-2016. I have two questions as follow
1. I am eligible to claim interest of 50K under 80EE
2. To claim pre interest for under construction property before registry, Which section shall be used for claim and How?
Please advise
yes you are eligible to claim deduction under section 80EE if the value of your house property does not exceed rs. 50 Lakhs and this is your first house. To claim pre-period interest , deduction will be available once the house property is completed in five equal instalments beginning from the year in which house property is completed.
Sir, will you please tell me the notification no. or Section nowhere it has been mentioned by the department that an assessee is eligible to take the deduction even if he has transferred his loan to another bank during the year 2016-2017 and house purchased in earlier years and same house is his first house.
Response from your side will be highly appreciated.
Best Regards,
Deepak Garg
Sir,
I have taken a housing loan on Dec 2016 , but the handover of the property is after April 2017.
I also have in the past taken a HL jointly with my parents , but the property is not owned by me.
I could not find any restrictions related to the handover is mentioned in the rule.
So, need your expert advise on the point ,
1) If I am eligible to apply for additional tax deductions under 80EE from the Financial year the property is handed over
2) The restriction of first time home buyer is only for home that is registered on my name or the Housing loan bought
Deduction u/s 80EE can be taken when following conditions are fulfilled-
1. Assessee do not own any residential house property at time of taking loan.
2. Loan do not exceed Rs.35 lacs.
3. Value of residential property do not exceed Rs. 50 Lac.
You can take deduction U/S 80EE as you do not own any house property. And deduction can be taken for AY 2017-18 if the house is registered with your name in FY 2016-17 as there is no restriction regarding handover of property.
Only one home registered at your name.
I have repaid principle amount of Housing loan and yet Interest portion of the loan is due which I am paying @Rs.2800/- per month. I invest in PPF to the tune of Rs.150000/- annually and claim rebate under 80c. Please let me know whether I am eligible to claim exemption on Interest on HL that I am paying every month @Rs.2800/- ? If yes, under which section of IT?
Yes, you can take the benefits of housing loan. Interest paid is allowed under section 24b and repayment of principal amount is allowed as deduction under section 80C subject to maximum of 150000.
I have taken a personal loan on 2014 of 6 lacs. Sir kindly tell me if I can show to interest of the loan paying each year for tax benefit under “income from interest” option og my employer manage tax section or I need to provide the details during feeling ITR this year.
There is no benefits in Income Tax for personal loan. You cannot take the benefit of Interest on personal loan.
@SAG infotech – interest paid on personal loan taken for property purchase, renovation or construction of home loan can be waived under section 24
Hello,
I have taken a Home loan for 60 Lakhs and the property value is 70 Lakhs. This loan was taken along with my brother as a co-applicant and now I want to understand how can I claim the interest paid for the tax exception as the Section 80EE is not allowing to submit when the loan amount exceeds 35L and property value exceeds 50L.
Please help me out.
Sir,
we both govt employees have joint house loan account but deduction from on account.total interest is around 2.6 lakhs. can we use this for tax deduction one for 2 lakhs and another for 0.60 lakhs.
Interest will be bifurcated in ratio of shares of both joint assesse in house.
Sir I have availed 1st time home loan of Rs 25L in May 2015. In current FY my home loan interest is 206000 and principle amount is 350000. What was the deduction should I get under each section ?
For AY 2016-17, if the house is self occupied, then deduction of interest under section 24(b) is allowed upto Rs.2 Lakhs provided construction is completed within 3 years otherwise upto Rs.30000 is allowed and if House is given on Rent, then deduction of interest under section 24(b) is wholly allowed. The repayment of House Loan is allowed as deduction under section 80C maximum upto Rs.1.5 Lakhs whether the house is self occupied or let out.
Sir,
An employee has taken 3 housing loans for the same residence, one for construction,one for extension and other for repair/renovation. How can he given principal- wise and interest-wise deductions for the three loans?
Repayment of Principle of Housing Loan shall be allowed as deduction under 80C maximum upto Rs.1.5 Lakhs. Interest on housing loan for construction will be allowed in five installment from the date of completion of construction. Interest on housing loan for extension or for repair or renovation is allowed only upto Rs.30000. Interest is allowed under section 24(b).
Hi,
My home loan of 22 lacs ( less than 35lacs) has been sanctioned in Aug 2016 i.e. FY-2016-17 and total cost of project is 25 Lacs ( Less than 50 Lacs). This is my first residential property. So I am eligible for 50,000/- under section 80EE.
But property is under construction and will get possession in year 2019. can I claim 50,000/- under section 80EE in FY 2016-17 or it will be claimed along with 24(b) after possession i.e after year 2019.
[Question : Does section 80EE applies to under construction property too ? ]
The property is under construction, you are not eligible to claim deduction of interest till the completion of construction. Hence you cannot claim deduction under section 80EE in AY 2017-18. Deduction under section 80EE can be claim if the value of Residential Property is less than Rs.50 Lakhs. If the property is under construction, we cannot determined the Value of property. Therefore 80EE deduction is not allowed.
I have taken house for 51 lacs, out of which i have taken loan of 41.5 lacs. The construction is complete but i have not taken the possession. From 1st Apr 2016 to 31 Mar 2017, I would have paid 4.5 lacs (3.7 lac as interest and 0.8 as principle amount). Please suggest how can i use the amount paid as EMI for tax saving for the year 2016-17. I am paying the EMI since Dec 2012.
If the House is Self-Occupied than interest is allowable upto maximum of Rs 2 Lakhs can be claimed under section 24(b) and if house is let-out than interest is allowable without any limit under section 24(b). And Repayment of Principle can be claimed as deduction under section 80C subject to maximum of Rs.1.5 lakhs. Apart from this, from AY 2017-18 an Additional deduction of Interest of Rs. 50000 can be claimed under section 80EE subject to specified condition mentioned therein.
I have property which is given on rent, i know the interest part is fully deduction under section 24, can i claim the deduction for the society bills which i am paying on monthly basis?
There is no deduction of society bills.
What are the documents required to furnish to avail exemption under 24 b for an independent house. I have an independent house in Lucknow where my parents reside. I have a loan on it for Rs 23 Lakh since 2015. The electricity bill and water bill is still under the previous owners name, but we are living in it.
when you are take a house loan then bank give you an annually statement copy related to the payment of installment. As a proof you can use the same.
SIR, I HAVE TAKEN THE HOUSING LOAN IST INSTALEMENT OF RS.4 LAC FOR CONSTRUCTION OF HOUSE OUT OF TOTAL SANCTIONED AMT.4050000/-. IN FY 2016-17. I HAVE REPAID THE PRINCIPAL AMT. 131000/- FROM DEC16-MARCH17 AND INTEREST AMT.14000/-FROM DEC16 TO MARCH17. CAN I AVAIL THE REBATE OF FULL PRINCIPAL REPAYMENT AMT.AND INTEREST ACCORDING TO INCOME TAX RULES. FURTTHER I WOULD LIKE TO STATE HERE THAT CONSTRUCTION IS UNDER PROCESS STILL PLENTH LEVEL WORK IS COMPLETED. CAN I ALSO TAKE THE REBATE OF HRA PAID BY MY COMPANY FOR RENT PAID BY ME FROM APRIL 2016 TO MARCH 2017. PLEASE GUIDE ME.
Sir, if your house is still under development phase then for interest amount you can take rebate in 5 equal installments. Whereas if your house is ready in that situation you can take principal amount benefit till amount Rs. 150000/- and for interest amount if it is self occupied in that situation via sec 24b you can take Rs. 150000/- benefit and via sec 80EE additional Rs.200000/- benefit. But if your house is rented in that situation you can take whole interest amount benefit via sec 24b without any limitation.
Hi,
My loan was sanctioned in 2nd week of March 2016 but first part amount was disbursed in last week of March. I am paying EMI starting May 2016. Can I claim for tax exemption of 50k under 80ee for 1st time buyer? Per logic as am incurring loan payment expenses starting May 2016 won’t I be eligible for this exemption??
For F.Y. 2016-17 i.e. A.Y. 2017-18 you can claim the deduction of Interest under section 24 and 80EE both. If loan amount is less than INR 32 lacs and property value is less than INR 50 lacs.
Dear Sir
Do me a favor in understanding 80EE to avail additional exemption ? I have invested in a construction linked property in FY 2015-16 and will have possession / registration in next FY 2017-18. The property cost is less than 50 laks and loan amt (=95% of property cost under CLP plan) is less than 32 laks. Currently I am staying at a rented house (Ghaziabad). In current FY 2016-17, can I get exemption u/s 80EE, if so, how much and under which section I have to claim and what are those necessary documents are required to be submitted, please confirm if possible.
In FY 2016-17 i.e. A.Y. 2017-18 if you paid interest on housing loan then there is 2 section where you can claim the deduction. First section 24 which for the self-occupied property you can claim INR 1,50,000 amount for deduction whereas in section 80EE you can claim additional INR 2,00,000 deduction against interest amount. As well as in section 80C you can claim the principal amount deduction too.
Sir, need more clarity. I will get my possession / get registration by next FY 2017-18 (not in current FY 2016-17). I used to pay principle and interest to Housing Loan company since FY 2014-15 as I have booked flat under CLP plan in FY 2014-15. My Loan was sanctioned in FY 2014-15. As on date, total 95% payment being made to builders (out of which fund disbursed by Housing finance company below 30 lakhs so far). I don’t own any flat in present day (staying at a rented huse), in this scenario, do I have eligibility to get exemption of Rs. 50k u/s 80EE in current FY 2016-17. I want to claim only deduction u/s 80EE in current FY, please suggest how can I get claim. Thanks !
Does section 80EE applies to under construction property too i will be getting possession Sep 17 and can i also claim for HRA with 80EE. I am claiming it in FY16-17 years
Taken home loan of 30 lacs for property of 47.90 lacs in November 2016. How can I take advantage of section 80ee as interest is less than 2 lacs
Sir,
I have taken loan in current fiscal. The benefit of deduction u/s 80EE i.e additional interest for first time home buyer for Rs. 50000/- will be only for AY 2017-18 or till the tenure of loan is outstanding
Hi
I have purchased a new flat. I have taken a loan of Rs.39 lakhs and the flat value is 46 lakhs. Whether i can avail Rs.50000 exemption?
No. Your loan amount should be less than or equal to 35 Lakh only then you are eligible.
Hi,
I have purchased a flat (in different city) on a home loan. The flat is complete, however it is vacant at the moment. I am myself residing at my work location (Gurgaon) on a rented house.
The value of property is less than Rs 40 Lakh. The loan amount is less than Rs 35 lakh.
I paid Rs 98,714 as principal component and Rs 3,09,491 as interest component for my home loan. How much of this can I claim under tax deduction and how should I show this?
What is loss from house property? How do I show that for my tax filing? If I keep a tenant in my flat, how will that affect my tax declaration sheet?
Thanks and regards,
Arvind
For the F.Y. 2015-2016, you can claim your principal amount deduction in section 80C where the max limit is 1,50,000/- and the interest amount deduction for the self occupied property is 150000/- deduction you can claim But for F.Y. 2016-17 there is a separate section 80EE will be introduce in which you can claim other than above extra 200000/- deduction of interest amount.
But if you take benefit of HRA than you cant take benefit of the house property interest and principal amount deduction as a self occupied property. In that case your property will be treated as deemed let out property.
sir,
I am a state govt employee. I applied a home loan of Rs 23 Lac jointly with my mother on dated Feb-2015 on my behalf. The Land on which i am constructing this house is registered on my mother,s name . my mother is a pensioner. she is getting 9000( nine thousand only) per month pension. I have made the agreement of home Loan on Sept 2015 with bank and i withdrawal first installment of loan in Sept 2015 and I am also repaying the Loan from my salary since Sept-2015. now my house is completed in oct-2016 and i am not using this house , my mother and my brother is living in this house. I am a govt employee hence i lived far away from this house. because house was not completed therefore i did not claim any tax exemption during financial year 2014-15. sir my question is as following-
1) can i get the first time exemption under sect-80 EE ? my home loan was senctioned between April-2015 to Sept-2016.
2) can I get the exemption on interest that i have paid during construction period ie sept-2015 to oct-2016?
3) I want to purchase a another house in another place for me & my childrens which will be registered on my name . In this case this house will be my first house but this home loan will be my second home loan. can i get same tax exemption on this house ?
1. Sir Sec 80EE exemption is available in F.Y. 2014-15 and 2016-17 not available in 2015-16.
2. Yes u can take credit of interest paid in construction period in 5 equal installments
3. Sir if you take deduction of interest and principal amount than in the eye of law you are treated yourself as a owner of the house property in this case if you purchase another house with your name it ll be treated as let out property. In our advice you can purchase new house with your spouse name.
thank you sir,
in continuation to above quarry-
if i take second home loan and i purchased a home on my wife,s name then will i be able to take same tax exemption on second home loan ?
sir if i pay my first home loan in 1 or 2 year by selling my old property ( Land) or through EPF and then i take a second home loan then will i be able to take all tax exemption on second home loan?
Hi, I am buying a fully constructed flat in delhi. Total price is less then 50 lacs.
I am taking loan of Rs 40 lacs ( which includes home loan of Rs 30 lacs+ construction loan of Rs 10 lacs) as house is old and it requires further construction)
Will I be eligible for additional tax benefit of Rs 50000 ?
As total loan value is more then 35 lacs.
Your early response is highly appreciated
Thanks
Sanjay
House should be new then only you will be eligible to take that exemption.
Sir, I have availed a housebuilding loan on 23 june, 2015. Can I claim tax benefit under 80EE for the interest paid during the F.Y- 2015-16.
No Sec 80EE is not applicable in the F.Y. 2015-16, But you can take credit of this under Sec 24 and Sec 80C
Dear Sir/Madam,
I have paid a service tax and MVAT of nearly Rs. 1,70,000/- on my Home. Can I claim tax benefit on that amount while filing ITR??
In Income Tax, only house loan principal and Interest amount paid are allowed as deduction others not allowed.
sir i have to pay interest on home loan during F.Y.2016-17 Rs.185000/- & portion of Pre EMI Interest is Rs.17000/- can i get rebate of interest on home loan beyond Rs.2Lakh (i.e.185000+17000=202000)
Interest limit of self occupied house property is 2,00,000 Rs. Maximum and loan is taken in FY 2016-17 and Loan amount is less than 35 lakhs and house cost is not more than 50 lakhs than you can claim deduction Upto 1,00,000.if these conditions are satisfied. You can claim balance interest u/s 80 EE so total exemption will be 2,04,000.
SIR,
SECTION 80EE DEDUCTION BENEFIT FOR ONE YEAR OR FOR 20 YEAR OF LOAN INSTALLMENT.
If loan is taken in FY 2016-17 then benefits of section 80EE is available in Assessment Year 2017-18 only not for 20 Years.
Hello Sir/Madam,
“Sir from may 2015 to Dec 2015 interest paid is Rs.85423 and principal is Rs.7239 and after possession i.e from Jan 2016 to march 2016 interest is Rs.44272 and principal is Rs.3422 So please tell me which amount should i show while filing itr and under which section whether i have to show the interest amount in negative
Please tell me with amount of interest and principal that i should show while filing itr 1. One.One more query my stamp duty is Rs.52431 as you said i can claim it under section 80c so should i have to show it twice i.e first for registration of flat and second for claiming it or only one time that means for both registering and claiming
As well as please tell me which interest amount can i claim and where i think interest amount will reflect twice one under income from house property and second amount for claiming and will the interest amount under both section will be same or different and should the interest amount under both the section should be negative or only i have to show negative under income from house property and positive for claiming under section?
I took the Pradhan Mantri Jeevan Jyoti Bima of Rs.330/- can i show it while filing itr1 if yes then under which section
Last query i took the flat but i am not residing there i stay with my parents in October i will shift there but the flat is vacant so do i have to submit any document and while filing under the head income of house property should i select the type self-occupied”
Interest paid before the construction period i.e. Rs. 85423 can be claim in 5 equal installment of Rs.17084 starting from the year of completion of construction and Interest paid after construction period i.e Rs.44272 can be claim in under section 24(b) in Income from House property in the relevant previous year. Principle amount paid i.e INR Rs.7239 and INR Rs.3422 both can be claim as deduction under section 80C as Principle Repayment in the relevant previous year in which repayment has been made. You have to write the interest amount in positive.
Stamp duty and registration charges paid on purchase of house property can be claim as deduction under section 80C . You have to mention only under section 80C for deduction. Maximum amount can be claim under section 80C is 1.5 lacs. Amount paid under Pradhan Mantri Jeeevan Bima Yojna can be claim as deduction under section 80C.
If you have only one house in your own name, then you can claim it as self-occupied property. If more than one house property then, any one can be claim as self-occupied and other one as deemed let out property under the head Income from House Property.
I have availed two Home loans in this financial year 16-17. one for my family in native and another for self that is another city of my work
How do I claim Tax exemption ? both loans are below 50 lacs
You can claim exemption of interest of one house loan under self occupied property and interest on another house loan under deemed let out property. You can claim deduction of principle amount of loan under chapter VIA section 80C.
I intend to take a housing loan of Rs 60 lacs from my father,and pay him back in monthly installements,over 5 years.I will pay interest @9.5% on reducing balance.This is my first housing in mumbai,though I do not stay in it,due to my job,being in other city.Please advise,if I can get full exemption of interest paid,from my Income Tax?
Housing loan exemption only where the amount of loan has been taken from any approved authority. In your case you are taking loan from your father although you are paying interest to your father. Hence no deduction or exemption will be allowed to you.
Wrong!. Provided the father can give a interest certificate for tax, stating his PAN number it is possible and allowed. (ie father should file his income tax and show the EMI & interest received by him as income)
Interest is allowed u/s 80EE only where loan has been taken from a financial institution or a housing finance company. Interest on loan from father is not eligible for exemption U/s 80EE.
Dear Sir,
I have paid Rs/-1,63,000 as interest on home loan during AY 2016-17. My employer has shown it in form 16 also. While filing online return on ITR-1, there is no colomn where I can show this interest paid. kinldy guide me that how and where in the e-filing form, I can show this deduction.
Thanking you in advance for your help
Dr Mukesh Chander
Ans: Just Go to Schedule HP in ITR show Interest under Income from house property head in negative Department will allow you to adjust interest with Salary Income.
Hi,
I bought a house in April 2013. And for the current financial year (2015 -2016) , folliwng is the Interest and Principal repayment split,
Interest – 1,81,755
Principal – 4,18,000
How much would I be eligible for Tax benefit? And the house is vacant. Last year I claimed in 80EE. Is that applicable this year also?
Regards,
Shankari
under which section the 5 equally divided interest amount paid in pre-completion phase will be exempted/deducted. other than 2 lakh for that AY? eg for FY 13-14, 14-15 if AY is 16-17.
Section 24 of income tax act 1961
Hi,
Does section 80EE applies to under construction property too?
Thanks
r/sir
pl guide to me for filing itr 1 for home loan interest in which section belongs to .this FY 2015-16 section 80ee is not showing in itr 1
ONE PERSON TAKEN HOME LOAN FROM A BANK AND HE CAN GET THE BENEFIT OF 80C BY PAYING PRINCIPAL AMOUNT DURING THE CONSTRUCTION PERIOD
Please let me know my queries.
Sir,
i have home loan how i refelect the same in my it return i.e. prinicipal and interest person
Wasim Ahmed and Prasanna Kumar Sahu: Sir there is 2 part of your home loan EMI one is interest part another one is principal part. for your interest part in current return (AY 2016-17) maximum exemption limit is Rs. 200000/- (for Self- occupied Property) under House Property Head and for principal amount exemption is claim u/s 80C the maximum limit of this section is also 150000/-. So firstly bifurcate your EMI in these 2 parts and take exemption accordingly.
I have purchased a home in 2015-16 and taken home loan of 1500000 for that i am paying an EMI OF Rs 14927 per month..Please explain me how much tax redemption i can avail? and under which head?
I purchased a home in 2014-15 and taken a home loan of 1300000 for that.So I m paying an EMI of rupees 12650 per month.Please explain me how much tax redemption I can avail?
Explain tax benefit on home loan.
Read the article carefully, we described already.