Can i sell a home which is on home loan before 5 years which was claimed for tax deduction?
I am planning to sell one of my flat bought in 2004 on home loan. I have claimed for tax deduction for 4 years already. I have a seen a clause in the yearly bank statement that i will not be entitled for tax saving on home loan if flat is sold before 5 years. Is it true? Please provide more information on this clause. A: yes ,you are right ,rebate/deduction will not be available if house is sold within 5 years .this is as per section 80c Current and 88old. but interest claimed on house loan will not have any effect at all.but principal claimed as deduction/rebate will be add back for all the year if house is sold before the 5th year.relevent clause is given hereunder. “(5) Where, in any previous year, an assessee (i) terminates his contract of insurance referred to in clause (i) of sub-section (2), by notice to that effect or where the contract ceases to be in force by reason of failure to pay any premium, by not reviving contract of insurance, (a) in case of any single premium policy,
