Can I get tax benefit under 80C for Principal payment for Under Construction Property ?

POSTED BY Karthikeyan Subramanian ON October 22, 2013 7:57 pm COMMENTS (4)

Hi,

I have taken a home loan in june 2013 and started paying the EMI from june. The property is a under construction one. I would like to know whether i can get the tax benefits for the principal paid under 80c for the financial year 2013 – 2014

Karthik

4 replies on this article “Can I get tax benefit under 80C for Principal payment for Under Construction Property ?”

  1. ashalanshu says:

    Dear Karthikeyan, please read the section 80C from Income Tax official site. It’s very clear that to avail this benefit, merely the repayment is enough. Yes for interest benefit, possession of house is compulsory.

    To claim the sec. 80C benefit, you just need the bank certificate of the same. In case, your employer does not support you (basically the person who is dealing your account section). No reason to worry. You can still claim it at the time of filing your ITR next year.

    thanks

    Ashal

  2. Karthikeyan Subramanian says:

    Thanks Ashal, but i see a different comment from the other members. So i just wanted to confirm, as the possession for the flat would be only sometime after June 2014.

    If the tax benefit under 80C is possible what all documents needed while filling during the financial year 2013 – 2014

  3. ashalanshu says:

    Dear Karthikeyan, Yes you can claim sec 80C benefit as possession is not required for claiming benefit under section 80C. Merely the repayment is enough.

    Thanks

    Ashal

  4. Credexpert says:

    Dear Mr. Karthik,

    Deduction under section 80 C for principle paid is only available on completed properties. Hence for the financial year 2013-2014 you cannot claim deduction for the same if the property remains to be under construction.

    However, the interest that you pay during this pre-construction period is deductible under section 24 of the Income Tax Act in 5 equal instalments after construction is complete (maximum of Rs.1,50,000 per year).

    Regards,
    Credexpert
    http://www.credexpert.in

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