BMC Associates says Replied on 6th June,2026 12:46 PM

Deduction under Section 80C for repayment of housing loan principal is available only when the conditions prescribed under the Income-tax Act are satisfied. If the property is transferred within 5 years from the end of the financial year in which possession was obtained, the deduction claimed earlier is withdrawn and becomes taxable in the year of transfer. Further, deduction is not available where the repayment does not relate to an eligible residential house property or where the assessee opts for a tax regime that does not permit Section 80C benefits. Therefore, the deduction of up to ₹1.5 lakh is not automatic and is subject to compliance with the specific provisions of Section 80C. For proper tax planning and evaluation of housing loan benefits, consulting a chartered accountant Gurgaon professional can help ensure compliance with the applicable provisions and maximize eligible deductions.