Tax exemption for Home loan repayment

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  1. Viji

    Viji New Member

    Hello all,
    Is there any tax exemption available for mortgage loan repayment of a property? If it is there how do we project this? If it is not there, why is it not there since this is a liability too..please advise.
     
  2. ZED

    ZED Well-Known Member

    It will depend upon the facts and the circumstances.
    Who is the one creating the mortgage?

    Roshanbabu Mohammed Hussein Merchant (Bombay H.C.)
    If the mortgage was created by the assessee himself, then it shall not be treated as cost of improvement because it is the assessee who himself created encumbrance.



    Where the assessee purchased or otherwise acquired the mortgaged property, then the mortgage expenses shall be allowed to be considered as cost of improvement because the property when acquired had some encumbrance, restrictions and with that the value of property would be lower but when those encumbrance/restrictions were removed the value of property would be higher.
     
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