Deduction of loan

This query is : Resolved

rohit (Querist)
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19 October 2013 A PERSON IS PAYING 1 LAC PER ANNUM AS INTEREST ON HOUSING LOAN WHICH HE HAS TAKEN FOR CONSTRUCTION PURPOSE FOR LAST 5 YEARS.

LAST MONTH HE HAS TAKEN 2nd LOAN FOR REPAIR AND RENOVATION PURPOSE FOR WHICH HE WILL PAY 60,000 RS PER YEAR

WHETHER HE WILL GET DEDUCTION OF

1.1,50,000 PER YEAR
2 1.30,000 PER YEAR
3.1,60,000 PER YEAR

NOW HE IS RESIDING IN HIS OWN HOUSE, FOR LAST 5 YEARS HOUSE IS ON RENT?
2 FLOORS ARE STILL ON RENT

@VaibhavJ

@VaibhavJ (Expert)
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19 October 2013 Hi

Refer this: http://www.simpletaxindia.net/2013/03/house-loan-interest-repayment-deduction.html

If you have still doubt do write back.

Thanks//Vaibhavj

rohit

rohit (Querist)
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21 October 2013 WHAT WILL BE THE ANSWER IN MY CASE OUT OF 3 OPTIONS

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@VaibhavJ

@VaibhavJ (Expert)
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21 October 2013 Hi

Provide me following details:

Date of completion of construction;
Pre-Construction Interest;
Status of property on which loan is taken?

Thanks//VaibhavJ

@VaibhavJ

@VaibhavJ (Expert)
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21 October 2013 Hi

In short:

Pre-Contruction interest is deductible in 5 installments from the FY in which construction is completed.

If house is let out than there is no limit on claiming deduction for Interest (including 1/5th portion of pre-construction Int. & Interest on loan taken for repairs)

But if property is self occupied than maximum deduction allowed is max Rs. 1.5 lacs.

Max amount for Int . on loan for repairs is Rs. 30,000/-

Thanks//VaibhavJ

@VaibhavJ

@VaibhavJ (Expert)
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21 October 2013 Answer in case would be:

Current Interest Rs. 1Lac + 1/5 of Pre Construction interest Rs. 1 lac (5 Lac/5) or Rs. 0.80 lac + Rs. 30K.

Thanks