The Hindu Business Line : The challenged are eligible for concession

Deduction can be claimed by a resident individual suffering from permanent disability, including blindness or mental retardation, at the end of the previous year. This deduction can be claimed under Section 80U, provided the disability is certified by a medical authority [as referred to in Section 2(p) of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 or notified by the Central Government under the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999] to issue such certificate. The deduction is available if the physical disability or mental retardation has the effect of reducing the person's ability to engage in gainful employment. The deduction that can be claimed is a sum of Rs 50,000 and if the disability is severe of Rs 75,000. Disability will also have the meaning under Section 2(i) of the Persons with Disabilities (Equal Opportunites, Protection of Rights and Full Participation) Act, 1995 and sections 2(a), 2(c) and 2(h) of the National Trust for Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disabilities Act, 1999.

Query

My wife and I purchased a flat in May 2001. The purchase was funded from out of my savings to a small extent and the balance with a loan from HDFC. I pay the EMI out of my salary. The sale deed for purchase of the house shows the property as jointly owned. My wife is also employed. Will it be possible for us to claim deduction under Section 80C if she pays money over and above the EMI?

Naveena Bedi

Reply

If you and your wife are joint owners of the property there should be no difficulty in her claiming the deduction Section 80C on the principal payments made by her from out of her income.

Query

I own a flat, which was purchased jointly by my wife and I. We live in this flat. I have taken a housing loan for purchase of this flat. I now propose to purchase a second hand flat, also for my residence. Will it be possible for me to get the tax benefits if I go in for a loan for this property? Will it make a difference if we constitute a joint family with my parents also living with us?

R. Ramesh

Reply

There should be no difficulty in your getting the tax benefits on the loan taken by you for acquiring the second flat. Normally you would be able to treat only one house property as self occupied and take its annual value as nil. The notional income from the other property owned by you should be offered to tax even though it is not actually let. In your case, however, given the peculiar circumstances it should be possible for you to treat both the properties as one unit and take its annual value as nil. As mentioned earlier, you can also get the tax benefits on the loan taken for purchase of the second flat. It will not make a difference whether your parents are living with you in a joint family or otherwise for the purpose of these tax benefits.

Mail your queries to taxtalk@thehindu.co.in or by post to Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002.

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