Abdul Basit (Block Officer) 25 March 2013

Consumption loan for housins purposes

Some banks provide provisional statements regarding Consumption Loans for purchase/construction/repair/renovation/addition/alteration , indicating principal component receivable and interest chargeable on such account during the FY Apr. 01 to Mar. 31 without mentioning the date of disbursement of loan, stage of construction,date of possession, status of occupancy etc

Shall such consumption loans qualify for rebate u/s 80C and u/s 24(b) of IT Act? How and in what proportion? Please favour with exlainatory comments.

With regards

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2 Replies

VARUN MAHAJAN (Proprietor) 26 March 2013

only if that loan has actually been taken for construction / renovation etc. and actually used in that only.

any yes it qualifies for deduction

NAVEESH DHAR (TAX PRACTICIONER) 27 March 2013

Yes , you can claim the deduction u/s 24 & 80C respectively of the income tax act if the loan amount is utilised for purchase or for construction of house. Further you can claim the deduction for interest on loan u/s 24 and repayment of only principal amount of loan u/s 80C of the income tax act.