Does Home Loan Processing Fee comes under 80C investments

My account department says that the Home Loan Processing Fee comes under the 80C investments (Section 2(28A)). As my 80C investment limit is exhausted, I cannot get any exemption on the Rs. 11000 I paid as the processing fee. Is this correct?

asked Apr 11 '11 at 08:58 by A9S6 66449


As per section 2(28A), the processing fee can be treated as interest, so it can be claimed as part of Interest, after completion of construction/possession. Its not a part of 80-C deduction.

answered Apr 11 '11 at 14:02 by pankaj 5.2k320

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@pankaj: Thats means I can only claim deduction after possession, and not before that? There are still 2-3 months till I get the possession.
(Apr 12 '11 at 02:15) A9S6
yes, you can only claim deduction after getting the possession. Same is applicable with home loan principal as well.
(Apr 12 '11 at 03:03) pankaj

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Asked: Apr 11 '11 at 08:58

Seen: 1,696 times

Last updated: Apr 12 '11 at 03:03