If the house constuction is not completd but one employee is taken loan for that house it it eligible to get exemption under sec 80c pricipal component of the loan. If any body is able to solve this clarification???? Regards Venkat
RE:Tax clarification
by Tukarama Shetty on Feb 06, 2008 07:43 PM Permalink
80c is available for the component of principal in the EMIs repaid to the finance agency, only after the construction is complete and the certificate of completion is obtained from the relevant local government bodies. So if the house is not complete in this financial year, you cannot claim 80c. Further, loan repayment normally does not start before the completion of loan. What you may be paying to the bank/finance institurion is pre-EMI payments. This is purely interest. Deduction towards this pre-completion interest can be claimed after completion of the house in five yearly instalments.
RE:Tax clarification
by Its Me on Feb 06, 2008 07:16 PM Permalink
yes you can avail the benefit but in that case you cant show another rent reciept etc
RE:Tax clarification
by mohit sahu on Feb 06, 2008 07:45 PM Permalink
yes absolutely....you need to collect letter from the Bank asking for the Principal and interest componenet
