land developer -Query?

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land developer
Query?
I have purchased a land from a land developer. I have paid 1/4 down payment of total amount from my S/B account and balance amount have to paid in monthly EMI for two years. i will pay these EMI from my salary. He will give me receipts for that EMI.
So please tell me whether i can show these receipts towards savings of income tax? currently i am residing in my father’s house and this is my first transaction in land purchase.
Solution:

1.    You are paying EMI for purchase of a plot.

2.    There is no Income tax benefits on EMI paid to builder for purchase of the plot.

3.    As far as the income tax benefit is concerned, the same is available if there is purchase of House property. If the House property is purchased then the amount paid towards registration Expenses (Stamp duty, registration charges etc.) are eligible for deduction upto overall Rs.1.50 lakh under section 80C. Housing loan taken for purchase of house property also eligible for deduction in the form of interest payment u/s 24b and principal repayment of loan u/s 80C

Hope the above reply will serve your purpose.

Thanks and regards,

CA Naresh Jakhotia

Nagpur.

Please refer

http://www.taxtalk.com

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