Question : Can i sell a home which is on home loan before 5 years which was claimed for tax deduction?
I am planning to sell one of my flat bought in 2004 on home loan. I have claimed for tax deduction for 4 years already. I have a seen a clause in the yearly bank statement that i will not be entitled for tax saving on home loan if flat is sold before 5 years. Is it true? Please provide more information on this clause.
- asked by sandeepagarwals
All Answers:
Answer #1
The best option is that go to the bank and discusswith bank personnal,
- answered by shahnaz khan
Answer #2
yes ,you are right ,rebate/deduction will not beavailable if house is sold within 5 years .this isas per section 80c Current and 88old.but interestclaimed on house loan will not have any effect atall.but principal claimed as deduction/rebate will be add back for all the year if house is soldbefore the 5th year.relevent clause is givenhereunder."(5) Where, in any previous year, anassessee(i) terminates his contract of insurancereferred to in clause (i) of sub-section (2), bynotice to that effect or where the contract ceasesto be in force by reason of failure to pay anypremium, by not reviving contract of insurance,(a)in case of any single premium policy, within twoyears after the date of commencement of insurance;or(b) in any other case, before premiums have beenpaid for two years; or(ii) terminates hisparticipation in any unit-linked insurance planreferred to in clause (x) or clause (xi) ofsub-section (2), by notice to that effect or wherehe ceases to participate by reason of failure topay any contribution, by not reviving hisparticipation, before contributions in respect ofsuch participation have been paid for five years;or(iii) transfers the house property referred toin clause (xviii) of sub-section (2) before theexpiry of five years from the end of the financialyear in which possession of such property isobtained by him, or receives back, whether by wayof refund or otherwise, any sum specified in thatclause,then,(a) no deduction shall be allowed tothe assessee under sub-section (1) with referenceto any of the sums, referred to in clauses (i),(x), (xi) and (xviii) of sub-section (2), paid insuch previous year; and(b) the aggregate amount ofthe deductions of income so allowed in respect ofthe previous year or years preceding such previousyear, shall be deemed to be the income of theassessee of such previous year and shall be liableto tax in the assessment year relevant to suchprevious year."
http://simpletaxindia.blogspot.com/
- answered by Rajababu
Answer #3
Yes you can sell your home with the help foranother loan provider, but you have to make sureyou are willing to pay back there agreed moneywith the part of the money realized, just contactMr Johnson i am sure he can help you sell thehouse, if you want to contact him here is hisemail address: (ben_aggie123@yahoo.com)
- answered by chris J
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