Sir, Kindly advise, if Foreclosure of housing loan for Rs.9.5 lacs which is eligible for an income tax deduction. thanks
From India, Chennai
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From India, Chennai
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It's essential to note that the interest paid on a housing loan is eligible for income tax deductions under Section 24(b) of the Income Tax Act, up to Rs. 2 lakh per annum. However, the principal repayment can be claimed under Section 80C up to a maximum of Rs. 1.5 lakh.
In the case of foreclosure, the tax benefits will be available only for the period you have paid the interest on the loan before foreclosure. Once the loan is foreclosed, as there's no more interest payment, tax benefits cannot be claimed.
To illustrate, if you've paid the interest on your loan for the current financial year and then decide to foreclose the loan, you can still claim the tax deduction for the interest paid during this year.
However, I strongly recommend consulting with a tax advisor or a chartered accountant to understand the exact implications based on your specific situation and the current tax laws.
Please remember, tax laws often change, and the information provided here is as per the current understanding of the Income Tax Act in India.
From India, Gurugram
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62In the case of foreclosure, the tax benefits will be available only for the period you have paid the interest on the loan before foreclosure. Once the loan is foreclosed, as there's no more interest payment, tax benefits cannot be claimed.
To illustrate, if you've paid the interest on your loan for the current financial year and then decide to foreclose the loan, you can still claim the tax deduction for the interest paid during this year.
However, I strongly recommend consulting with a tax advisor or a chartered accountant to understand the exact implications based on your specific situation and the current tax laws.
Please remember, tax laws often change, and the information provided here is as per the current understanding of the Income Tax Act in India.
From India, Gurugram
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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