Can I get revenue tax profit on dwelling mortgage pay as you go and penalty charged?

I’ve absolutely repaid my housing mortgage to LICHFL in December, 2020 for my self-occupied flat. The lender has additionally charged me a pay as you go penalty for this. Can I get any tax profit for quantity of mortgage repaid and the prepayment penalty?

As per Section 80C an Individual is are entitled to a deduction upto Rs. 1.50 lakh in respect of quantity repaid in direction of reimbursement of dwelling mortgage taken from specified establishments. This deduction is not any essentially restricted to the part of principal reimbursement comprised in your month-to-month EMI however can also be obtainable for any half or full prepayment made throughout the yr. Please be aware that the mixture quantity of deduction obtainable underneath Section 80C shall not exceed Rs. 1.50 lakh regardless of the quantity of dwelling mortgage repaid by you.

The deduction underneath Section 80 C for principal reimbursement of certified dwelling mortgage is obtainable together with numerous different funds like Life Insurance Premium, ELSS, NSC, PPF, Provident Fund and tax saving financial institution FD, tuition price for kids and many others.

As regards declare of prepayment penalty paid by you, as per the provisions of revenue tax any price or fees paid in reference to the mortgage can also be handled as curiosity and subsequently it is possible for you to to say the quantity of processing price paid by you underneath Section 24(b) together with the quantity of curiosity paid by you throughout the yr however solely throughout the general restrict of Rs. 2 lakhs relevant for a self-occupied home property.

Balwant Jain is a tax and funding skilled and will be reached on jainbalwant@gmail and @jainbalwant on Twitter

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