April 2, 2012 1:12 am
If I make a prepayment of Home loan, then would the principal so prepaid be eligible for the deduction under section 80 C of Income Tax Act ?
Thank you gentlemen. I was having the same thoughts but wanted to confirm.
Yes the principal of the pre payment can be shown under 80c with the limit of 1Lakh.
There is no wording that mention that its not eligible..
Dear BanyanFA, the answer is YES but within the over all limit of Section 80C. FYI – I had availed the same benefit some years ago, while I prepaid my loan partially for 2-3 years to close the loan. In case the employer is not entertaining such prepayments to be counted under 80C limit, you may claim the same while filing the ITR.
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