Deduction u/s 24b

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015 I have purchase house in 2010( deal happened and money paid vide loan) . possession got in july, 2014. registry made in sept, 2014.
can i avail exemption u/s 24b for interest on loan from 2010 to 2014 in current year 2014-15

Rupesh Jain

Rupesh Jain (Expert)
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22 January 2015 as per section you have to make or take possession of house form three year from the loan date. otherwise you have to eligible to take intt deduction rs/. 30000/- only.

Querist : Anonymous

Querist : Anonymous (Querist)

22 January 2015 thanks,.... can u plz explain ...

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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20 July 2024 Under Section 24(b) of the Income Tax Act, you can claim a deduction for interest payable on housing loan during the period when the house property is owned and is capable of being occupied. Here’s how it applies to your situation:

1. **Period of Interest Deduction:**
- You purchased the house in 2010 and the possession was obtained in July 2014.
- The registration of the property was completed in September 2014.

2. **Eligibility for Deduction:**
- The deduction under Section 24(b) can be claimed for the interest paid on the housing loan during the period when the property is owned and is capable of being occupied.
- From 2010 to July 2014: Since you purchased the property in 2010 and the possession was received in July 2014, you can claim the interest paid during this period once you have the possession.
- From July 2014 onwards: You can continue to claim the interest paid on the loan once the property is registered and is capable of being occupied.

3. **Conditions to Claim Deduction:**
- The deduction is available on interest paid during the pre-construction period (if any) and also on interest paid after the construction is complete, up to a maximum of Rs. 2 lakh per year.
- The property should be used for your own residence or should be let out.

4. **Procedure:**
- Ensure you have documentary evidence of interest paid on the housing loan. This includes loan statements from the bank showing interest payments made during each financial year.
- While filing your income tax return for the relevant assessment year (AY), you can claim this deduction under Section 24(b) in the schedule for income from house property.

5. **Year of Claim:**
- For the financial year 2014-15 (assessment year 2015-16), you can claim the interest paid from 2010 (when you started paying interest on the loan) to July 2014 (when possession was obtained), provided the property was capable of being occupied during this period.

6. **Consult a Tax Professional:**
- It’s advisable to consult a tax professional or a chartered accountant for specific advice tailored to your situation. They can help ensure compliance with tax laws and maximize your eligible deductions.

In summary, yes, you can claim deduction under Section 24(b) for the interest paid on the housing loan from 2010 to 2014 in the assessment year 2015-16, provided the property was capable of being occupied from the time possession was obtained.