Loans that are exempted from TAX
by kathirvel sundararajan on Apr 24, 2007 12:30 PM Permalink | Hide replies

Hi,
I would like to know the list of loans type whose EMI paid during a financial year can be deducted from the Income for Tax calculation

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RE:Loans that are exempted from TAX
by Amitabh on Apr 24, 2007 01:19 PM Permalink
For home loan EMIs,principal part is deductible within the overall limit of rs 1 lac under Sec 80C and interest is deductible while calculating income from house property.However,principal deduction is available only when house is transferred in your name.For pre construction period interest,it will be deductible in 5 instalmants begening with the year when the property is transferred in your name.Education loan interest is also deductible under Sec 80E subject to the conditions specified therein.There is no limit as to the amount but principal repayment for hoam loan is not deductible.

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RE:Loans that are exempted from TAX
by Amitabh on Apr 24, 2007 01:20 PM Permalink
I am sorry.I meant to say that principal repayment for education loan is not deductible.

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