The Act provides benefits to the taxpayer with respect to repayment of home loan, in the form of deductions under sections 24 and 80C of the Act. Under section 24 of the Act, the deduction for payment of interest on the home loan utilised for purchase, construction, repair or renovation of the house property can be availed. Whereas, deduction under section 80C of the Act is allowed in respect of the principle repayment on the home loan utilised either for purchase or construction of the house property. The said deductions can be availed by the taxpayer only if the loan has been utilised for the aforesaid purposes of house property without having bearing on the type of loan, that is, top-up home loan or fresh loan. Thus, benefits under section 24 and 80C of the Act are the only benefits which the individual shall be entitled to and deduction shall be allowed if the loan is utilised in accordance with the above sections.
Thus, in the case of top-up home loan also, deduction only for interest payment under sections 24 of the Act shall be allowed and no separate benefit shall be provided for transfer of home loan. Further, the Act does not restrict the number of times the loan can be transferred.
The PPF account can be opened by an individual in the name of self, spouse or children. A subscriber may extend the PPF for a block period of five years according to the limits of subscription specified in the scheme. Extension can be made even on the expiry of the extended block of five years and so on. Therefore, you can extend your PPF account further for a block of five
Chirag Nangia, Director, Nangia Advisors (Andersen Global)
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