HDFC procures financial institution status
By Our Banking Bureau | 26 Jun 2002
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New Delhi: The central government has specified Housing Development Finance Corporation Ltd (HDFC) as a financial institution for the purposes of section 80E of the Income Tax Act, 1961. As per section 80E, a maximum amount of Rs 40,000 can be claimed as deduction under this section in computing the total income of an assessee in a particular year.
This deduction is allowed in computing the total income in respect of the initial assessment year and seven assessment years succeeding the initial assessment year or until the loan along with interest is paid by the assessee in full, whichever is earlier.
