Deduction of Housing Loan Repayment and Interest

7/24/2019 Deduction of Housing Loan Repayment and Interest

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Deduction ofHousing Loan

Repayment andInterest

Of Principal

amountof Housingloan and Its InterestComponent


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Deduction under SEC-80COnly !or Principal Loan Repayment"

Principal repayment component of up to Rs.#$%0$000(Rs& '$00$000 for senior citizens) canbe clubbed under the overall limit for tax savinginstruments eligible under Section 80.

!vailable only for purc(aseor constructionofresidential property

"eduction available only for self occupiedproperty&

"eduction is available only #hen actual paymentis done(i.e on cas( )asis and not on accrualbasis$ so the principal portion unpaid %&' and%&'s accrued is not eligible for deduction

ax "eduction claimed #ould be reversed if

Property sold #ithin * years from the end of


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Section '*Only for Interest Component"

"eduction is available on +ccrualbasis.

"eduction available if loan ta-en for the purpose ofPurc(ase Construction, Repair RenealReconstructionof a Residential /ouse Property.

!nnual 'nterest component of up to Rs.'$00$000(Rs. .$00$000for senior citizens) can beclaimed as deduction against income.('f completed#ithin years from the end of 1.2$ 'f 3ot then

deduction #ill be reduced to Rs 0$000) 3o maximum 4imit if 3ot a Self occupied Property.


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Deduction under 80EEInterest Component Only"

!dditional tax deduction of Rs #$00$000is available to 1irsttime home buyers in respect of 'nterest on home loan.(hisdeduction #ill be over and above the deduction limit of Rs6$00$000 allo#ed for self7occupied properties under section6b of the 'ncome ax !ct 9:;9.

Conditions/- #"his is your 9sthouse purchased.

'"


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........Section 80%%

!s per the 1inance =ill$ 609$ 1inance&inister announced that$ >' propose to allo#such home buyers an additional deduction

of interest of Rs.9000007 to be claimed in!.2.60979*. 'f the limit is not exhausted$the balance may be claimed in !.2.609*79;.his deduction #ill be over and above the

deduction of Rs.6$00$0007allo#ed undersection 6 of the income tax !ct.?

('nserted on 977609)


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Summary Of Deductions forInterest Component

Particulars Self OccupiedProperty

2on-Self OccupiedProperty

Section 6 Rs 6$00$000 3o 4imit

Section 80 %% Rs 9$00$000 Rs 9$00$000


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Summary 1or Section 6and 80Particulars Section '* Section 80C

ax "eduction !llo#ed 'nterest Principal !mount

=asis @f ax "eduction !ccrual =asis Paid basis

Auantum S@PB6$00$0003on7S@PB3o limit

Rs 9$*0$000

Purpose @f 4oan Purchase onstructionRepair Rene#alReconstruction of aResidential /ouseProperty.

Purchase onstructionof a ne# /ouse Property

%ligibility of laiming axdeduction

Purchase onstructionshould be completed#ithin years

3!

Restriction on sale ofproperty

3! ax "eduction claimed#ould be reversed ifProperty sold #ithin *

years

Deduction of Housing Loan Repayment and Interest

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