27 May 2011
Dear Sir, Our organization provides residential accommodation to employees. There are many employees residing in staff quarter and having home loan.
QUERY
Can employees residing in staff quarter claim deduction for home loan interest regarding loan taken for purchase of house property at their native. The house at native place is self occupied.
27 May 2011
if the assessee is owner of only one resident house which he is unable to occupy on account of his employment,and he has to reside at that other place in building not owned by him, the annual value of such house shall be nil and interest is allowable as deduction up to maximum amount of Rs 150000/-if the house is construed after 01/04/1998 and Rs 30000/- if the house is constructed before 01/04/1998
28 May 2011
LIMIT OF 150000 APPLIES IF THE PROP IS ACQ OR CONSTRUCTED WITH CAPITAL BORROWED ON OR AFTER 1-41999 AND SUCH ACQ/CONST IS COMPLETED WITHIN 3 YEARS OF BORROWING
CAclubindia
