07 January 2010
Acc to sec24(b) Mr.x starting construction of residential house on 1.11.04&he raised a loan of Rs 500000 @16%p.a on 1.11.04 for construction house He raised a further loan of Rs 800000 @16% on 1.10.07 for overrun in the cost of construction. and completed on 1.12.09.
confusion is that u/s 24(b) limit of 1.5 lac is available if construction/purchase completed with in 3 years from the year loan taken ... & such limit is of aggregate in nature .. if more than one loan for one single house then also total limit 1.5 lac.. other wise 30000
in above case 2 loan for one house & complition on 1.12.09 but utilisation of second loan fall in 1.5 lac criteria & first loan fall in 30000
07 January 2010
According to Sec 24(b), of Income Tax Act,1961, Following para should be read:
"where the property is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees."
Therefore, after reading above para you will get know that Deduction of Rs. 1,50,000 is available to the Property but not to the loan/Individual.
So, Maximum deduction is available to you upto Rs. 1,50,000 and based on this, you can claim deduction of Interest on Both loans but subject to maximum Rs. 1,50,000.
08 January 2010
in my view since you have not fulfiled the basic condition i.e. the house has not been completed within three years of the years from the end of the financial year in which the capital was borrowed, you aare not eligiable to get any seduction for interest on HBA.
08 January 2010
AS per provision of Sec 24 (b) the construction of the house must be complete with three year from the comencement of construction and any subsequent loan taen for constuction to cover up overrun in the cost of construction, shall be treated as extention of the existing loan . So in the present query the maximum amount of dection for interest on loan is Rs 30000/- inteadd of150000/-.As the basic condition of constuction period of three year not fulfiled.
CAclubindia
