Difference between Section 24b and Section 80C

Difference between Section 24b and Section 80C

Interest on home loan is allowed under section 24b while principal on home loan is allowed under section 80C. A comparison between section 24 and 80C is given here under: –

 Particulars Section 24b Section 80C
Tax Deduction allowed only for  Interest Principal
Basis of Tax Deduction Accrual Basis Cash Basis
Amount of Deduction Self-occupied property: Rs. 2,00,000 (From assessment year 2015-16)
Other than Self occupied property: No limit
Rs. 1,50,000 (From assessment year 2015-16)
Purpose of loan  Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a Residential House Property.  Purchase / Construction of a new House Property
 Eligibility for claiming Tax deduction  Purchase/ Construction should be completed within 3 years NIL
Restriction on Sale of Property  NIL Tax Deduction claimed would be reversed if Property sold within 5 years from the end of financial year in which such property is acquired by him.
Deduction during construction period Interest paid during the construction/acquisition period shall be allowed in 5 equal instalments from the last day of preceding Financial Year in which the construction is completed No deduction is available for the principal repayment during the construction/acquisition period.

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