India Income Tax Made Simple

Archived; click post to view.
Excerpt: I have purchased a house. At the time of purchase I had taken a loan of Rsx. I paid the full amount to the builder. The possesion of the property has not been given yet. My question is can I claim income tax benifits on the same.I mean interest on the home lean and principal payment.While deduction of interest u/s 24 is allowable only after completion of your house, no restriction is there for claiming deduction of principal payment u/s 80C. Suman, New DelhiThe aggregate of interest paid till the year of completion can be claimed in five equal instalments…

Archived; click post to view.
Excerpt: I had taken a home loan [Single Applicant i.e. Me] from HDFC in May 2005 for a flat whose construction was start in year 2005. I had received the allotment letter in June 2005. I had received the offer for possession in July 2008. I’ll be taking a formal possession in august 2009. Registration is likely to be done in year July, 2010 after the builder gets the completion certificate from Govt Authority. Already some families are staying in the apartment complex. The loan was completely paid in May 2008 and I already have No Dues Certificate from…

Archived; click post to view.
Excerpt: I had built a house in my ancestral property owned by my Father. As per Will registered I will be the sole owner of the property after my father. With the will,property document and no objection certificate from my mother and only sister I approached a state bank and after clearance from there legal department the bank granted me loan for construction of house. Now the construction is over and when I submitted the Income Tax projection certificate received from the bank in my office I am told that as the property is still in my fathers name I cannot…

Archived; click post to view.
Excerpt: I have taken a home loan of Rs. 8.36 lakhs from ICICI Bank about 3 years ago for purchasing a flat. The flat is registered in my name, but my wife has been taken as co-applicant for the Home loan for eligibility purposes. I have been paying the entire EMI of Rs. 10,500/- through ECS from an account held by me (Individual account). I have been solely claiming income tax benefits for the last 3 years. I have noticed that I am not using up the entire income benefit while my wife is paying income tax of around 30,000. Can…

Archived; click post to view.
Excerpt: I am Puneet. I alnogwith my Wife is also a Govt. employee. We both are living in Delhi. I alongwith my wife is living in my mother house for which the rent is given by me(only) to her by cheque. One year ago I alongwith my wife had taken a loan Rs.12,80,000/- from the bank for the purpose of purchasing a house against Securities of Rs.16 lakhs of my father which is already deposited in the bank by my father. The bank is paying interest on 16 lakhs to my father’s savings A/c separately and we are paying EMI (principal…

Archived; click post to view.
Excerpt: In many cases, the builders offer the scheme to buyer for instalments and under an agreement they charge for the interest on the instalments. Then there may be case that the builder agrees to take sale price in instalment and for that he charges interest. Punjab & Haryana Court while deciding the case of CIT vs Sunil Kumar Sharma [2002] 254 ITR 103 stated that in such agreement where in builder agrees to accept the sale price in instalments and charge interest, the builder becomes lender and the assessee a borrower. Interest paid in such cases are allowable as the…