Home loan Query

POSTED BY Sunny ON June 27, 2011 9:42 am COMMENTS (7)

I was randomely checking for EMI calculation on bankbazaar.com and when checked for tax implications for 80C, I found this.

 

http://www.bankbazaar.com/home-loan/productDetails.html?offerId=ddcf8bc4-dcc4-4417-b294-ba88a365e74e

 

I can see tax saving under 24 clause but I cant see tax saving under 80C, It shows it as zero.

I am not sure if is there any bug or thats how it is?

 

7 replies on this article “Home loan Query”

  1. ashal jauhari says:

    Dear Sunny, In the name of changing the current Income Tax ACT 1961 with sweeping changes, the home loan principal benefit has been withdrawn. Why? Only finance minister & the BABUS of financial ministry can tell.

    Thanks

    Ashal

  2. Sunny says:

    Thanks Ashal. Why are they are doing this? Any logical/rational reason behind the move? If you are aware.

  3. ashal jauhari says:

    Dear Sunny, Yes under DTC, the section 80C benefit for repayment of home loan principal amount is not available. Yes the Interest benefit is as it is under DTC like the current system.

    Thanks

    Ashal

  4. Sunny says:

    Thanks Ashal. You mean in DTC , there is no exemption under 80c for home loan?
    Its just for 24(b) ?

    I am talking about resell flat so possession will be there.

  5. ashal jauhari says:

    Dear Sunny, There is a correction in what dear Manish has said above please check the following link & check exclusively point no. xviii there in the link –

    http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=5cc58b11-ea04-4050-88b4-70686201a409&rdb=sec&yr=e5be6bdb-1fc4-42d6-ac7b-34a44fd65485&sec=80c&sch=&title=Taxmann – Direct Tax Laws

    For Section 80C tax benefit, no requirement of having possession but in case of interest benefit under section 24(b) yes the possession of the house is a pre condition.

    I hope it’s clear to you now.

    There is more to it, As the section 80C starts from the day of principal repayment, the 5Y clause of non eligible of sell of the house is also applicable to it. From the FY you first started availing 80C benefit.

    Interestingly under proposed DTC, such benefit of principal repayment ‘ll not be there so this so called benefit ‘ll be there only for current FY if I assume that from next FY i.e,. 2012-2013 DTC ‘ll come in to effect.

    thanks

    Ashal

  6. Sunny says:

    In property detail I choose ‘Buy already built home/flat’ So that should be a case.

    You can also do a sample test.

    But anyhow, principal amount should be under 80C right?

  7. Sunny

    there cant be 80C tax saving before getting the possession , so it might be the case with your search ! . Is it ?

    Manish

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