Does Home Loan Processing Fee comes under 80C investments

A9S6 66
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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?

processing-fees 80c home-loan income-tax
1 Answers

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.

Pankaj Batra5212

@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.

A9S6•

yes, you can only claim deduction after getting the possession. Same is applicable with home loan principal as well.

Pankaj Batra•
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