10 March 2009
I have paid prepayment penalty of Rs.15000 for shifting my house building loan from a higher interest being housing loan from bank "A" to low interest bearing housing loan from Bank "B'
Please advise: 1. I can treat prepayment penalty as interest for deduction section 24 of I T Act
2 Whether I can claim interest paid to bank A (APril 2008 to June 2008)and B (July 2008 to March 2009)uner I T Act
10 March 2009
Sec 24(b) strictly restricted to interest paid on borrowed capital fr hsg loan & it does not allow the penalty paid for forclouser of hsg loan.
Yes, you can claim interest paid to difference banks for hsg loan.
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