Can Employees Claim Tax Exemption on Company-Provided Housing Loans? Seeking Advice

If a company provides a housing loan to its employees, can the employee claim tax exemption under Sec 80C for the principal amount and on interest? Please advise.

Regards,
Komal

The answer is yes. You can claim tax exemption under Section 80C of the Income Tax Act for both the principal and interest on the housing loan provided by your company.

Regards,
Jawed Alam

Hi, can anyone explain how to deduct the amount for principal and interest on a housing loan under IT?

Tax Exemption on Housing Loan Components

The housing loan interest component will be deducted from the gross salary under Section 24, subject to a ceiling of ₹150,000 in a financial year. The principal component will be counted under Section 80C for a maximum of ₹100,000.

Regards,
Pon

Thanks for your comments. I'm having the rules for IT deduction under a housing loan. The rules say Pre-EMI cannot be claimed now; it can be claimed only after the acquisition of the house. But my concern is, our employee is paying Pre-EMI. His full amount will be disbursed within four months. After that, he will be paying EMI. Now, I don't know how to proceed. Can you please guide me?

Dear Bharathi, you need to go to this weblink FAQs: Income tax & home loans for your complete solution.

Understanding Pre-EMI and Tax Deductions

I'm having the rules for IT deduction under the Housing loan. The rules state that Pre-EMI will not be claimed now; it can only be claimed after the acquisition of the house.

My concern is that our employee is paying Pre-EMI. The full amount will be disbursed within four months, after which he will be paying EMI. I am unsure of how to proceed. Can you please guide me?

Regards

Possession Letter and Tax Benefits

A possession letter from the builder is required for claiming tax benefits. However, the pre-EMI and interest will be shown in the statement of the loan provider once the EMI starts.

Regards,