home loan tax benefit

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  1. enwarun

    enwarun New Member

    My son & daughter in law are gainfully employed with annual incomes of Rs 8 lakh & Rs. 5 lakh respectively with collective take home of Rs 90,000 pm. A property worth Rs 45 lakh has been recently procured in April 16 with a sanctioned loan of Rs 33.5 lakh from ICICI. The property shall be ready by October 16 with OC & already 95% payment is done using Rs 30 lakh disbursement from ICICI. Both of them are sharing the own contribution & payment of EMI in equal amount. for the FY 16-17, the expected interest & return of capital is Rs 2.4 lakh & Rs. 80,000/- (10 EMIs).
    Pl advise how each of them can claim tax benefit under section 24, 80C & 80EE. What documentation shall be required for claiming tax benefit?
  2. ZED

    ZED Well-Known Member

    U/s 24(b), deduction is allowed for payment of interest. This is available to the extent of Rs.2,00,000 provided its for self occupancy.
    However if the interest amount is over 2 Lacs, the excess interest can be claimed u/s 80EE for a further sum of upto 50,000 only.
    Note- There shall be no double deduction.

    U/s 80C , deduction is allowed for repayment of the principal portion.

    Further note that the above limits which I have cited are for EACH individual.

    In order to claim deduction of interest , you must obtain the interest certificate from ICICI and should keep it in records for atleast 6 years.
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