Home Loan and Tax Deduction in India

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Home Loan Deductions
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Home Loan Deductions

• The deductions that you get from taxable income
  on purchase of house property.
• You can get a deduction of home loan interest
  repayment under section 24 of the Income Tax Act
  and a deduction of the principal amount under
  section 80C.
• Both these deductions can be claimed for houses
  of which the construction is completed.

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Home Loan Deductions

• Processing fees paid at the time of loan
  sanctioning can also be claimed as interest
  repayment under section 24.
• Apart from this you may also claim the amount of
  money that you paid for stamp duty, registration
  fee and other expenses in the process of
  transferring the property in your name under
  section 80C.
• This deduction can however be claimed in the year
  of purchase itself. You need not wait till the
  construction of the house property is complete to
  claim this deduction.

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Home Loan Deductions

• Example
• If you have purchased a house in April 2015 and
  paid Rs. 100,000 as stamp duty and registration
  charges then you can claim these expenses as a
  deduction u/s 80C for the FY 2015 - 16.
• The amounts paid as interest repayments and
  processing fees paid will accumulate and can be
  claimed as a deduction from the year in which the
  construction gets completed.
• Principal repayments made before the construction
  of the house is completed cannot be claimed later
  and will lapse.

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Home Loan Deductions

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