Treatment of interest paid on loan.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 June 2013 a person purchase house which is under construction in 2007 and take a finance from bank so what is the treatment of interest paid on that loan.

please also mention related section and case law

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 June 2013 you can claim the interest u/s.24(b) but The construction or acquisition of the house property is required to be completed within three years from the end of the financial year in which the home loan is taken. If this condition is satisfied, deduction under section 24 on account of interest payment on the home loan would be limited to maximum of Rs 1,50,000 a year.