Please Help: Int. Exmp on House Property

Posted Date : 14-Feb-2012 , 02:02:54 pm | Posted By VINOD SAHARAN

Hallo sir,
I have taken loans for construction of house first loan on 1.4.2010 (Loan a/c no 125) for Rs. 10 lacks and second loan for same house was taken on 1.7.2011 (loan A/c no 220) for Rs. 2 Lacks.
My query
1. Can I avail interest exemption on both loans, if yes please specify.

Category : Income Tax | Answers : 4 | Comments : 3 | Hits : 242

Answers

Answer By: Mrattunjay

Yes interest will be allow on both laon but limited to 1.5 Lacs for one person , if taken loan for husband and wife both name then both can take exemption 1.5 lacs each

Answer By: Siddharth Bumb

yes you will get benefit subjest to Rs 150000...

Answer By: CA Gaurav Kumar Agarwal

yes, interest will be allowed on both the loan taken to the extent of rs. 1.5lac/- however, if the second loan taken is for the purpose of repair, renewal, reconstruction of house then, the interest will be allowed to the extent of rs.30000/-

Answer By: Rambabu Senkarasetti

Yes. U can avail

Comments

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Jitesh Golani

14-Feb-2012 , 08:38:35 pm

The Extracts of section 24(b) are as follows: "where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital" If you are able to justify that both the loans have been taken for the construction of your house then you can claim interest deduction for both the loans. Moreover, if for the first loan, the construction gets completed before 31.03.14(assuming loan was disbursed to you on 01.04.2010) then you can claim upto Rs.150000 for the first loan and then upto Rs.30000 for the second loan. However the total must not exceed Rs.150000. Moreover, if you have taken loan from any specified financial institution under Section 80 then you can also claim the benefit of repayment of principal amount subject to a maximum of Rs.100000 during the year. You should also understand that the deduction under section 24(b) is allowed on accrual basis(provided the construction is completed) and deduction u/s 80C is allowed on cash basis i.e. when you actually repay the principal amount. Hope you find this information useful for your purposes.

CA Gaurav Kumar Agarwal

15-Feb-2012 , 11:31:35 am

Yes interest will be allowed on both loan amount to the extent rs.1.5lac/- however if the second loan taken for the purpose of repair, renewal, recont of house then the max limit of interest allowable is rs. 30000/-