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7/24/2019 Deduction of Housing Loan Repayment and Interest
1/7
Deduction ofHousing Loan
Repayment andInterest
Of Principal
amountof Housingloan and Its InterestComponent
7/24/2019 Deduction of Housing Loan Repayment and Interest
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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
7/24/2019 Deduction of Housing Loan Repayment and Interest
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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.
7/24/2019 Deduction of Housing Loan Repayment and Interest
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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$000 allo#ed for self7occupied properties under section6b of the 'ncome ax !ct 9:;9.
Conditions/- #"his is your 9sthouse purchased.
'"
7/24/2019 Deduction of Housing Loan Repayment and Interest
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........Section 80%%
!s per the 1inance =ill$ 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)
7/24/2019 Deduction of Housing Loan Repayment and Interest
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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
7/24/2019 Deduction of Housing Loan Repayment and Interest
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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