If a person takes housing loan and repays it ,

Benefit of Principal repyment is available under Section 80C (Max 150000 limit in Section 80C)

and

 interest repayment is available under House Property (Max 200000 deduction)

 

In addition benefit on interest repayment also available under Section 80EE subject to certain condiitons being satisfied

  1. This deduction is for Individual only.
  2. Interest on new loan sanctioned in Financial year 2013-14 is allowed as deduction
  3. Maximum deduction is 100000 for Financial year 2013 -2014
  4. If interest payable is less than 100000 in Financial year 2013-14, remaining amount is allowed in next financial year (2014 – 15)
  5. Following condition should be satisfied

    (a) Housing loan must be sanctioned between 1 April 2013 and 31 March 2014 .

    (b) Loan amount should be upto 25 lakhs  

    (c) Value of property should be up to 40 lakhs

    (d) Assessee should not own any other property

Note :-

If deduction allowed for interest under this section, then deduction cannot be claimed under any other section of any year.

  1. Income Tax
  2. Deductions Under Chapter VIA
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Davneet Singh
Davneet Singh is a graduate from Indian Institute of Technology, Kanpur. He has been teaching from the past 7 years. He provides courses for Mathematics and Science from Class 6 to 12. You can learn personally from here https://www.teachoo.com/premium/maths-and-science-classes/.
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