5 smart things to know about repayment of home loan principal

By | August 4, 2015
(Last Updated On: August 4, 2015)

1. The principal repayment of home loan  EMI is allowed as deduction under Section 80C of the Income Tax Act.

2. The maximum tax deduction allowed under Section 80C is Rs 1.5 lakh, which includes investments in other instruments also.

3. This deduction is allowed only after the construction is complete and completion certificate is awarded to the buyer.

4 Payment made towards stamp duty and registration charges are also allowed to be claimed under Section 80C in year in which paid.

5. In case the assesse transfers property on which he has claimed tax deduction under Sec 80C before 5 years, deduction claimed shall be deemed as income in year that the property was sold and taxed accordingly.

Source  :economictimes

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