Interest Allowable u/s 24

This query is : Resolved

rajesh (Querist)
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10 January 2011 Mr. raised two loan from bank for construction of house, first loan was taken for Rs. 500000/- on 1.11.98 and second loan was taken on 01.10.99 for Rs. 800000/- construction of house completed on 31.3.2000 , i have a query,

Q - Is interest allowable u/s 24 is applicable for the both or extent of Rs. 150000/- only.

(for the extent of Rs 30000/- for first loan

for the extent of Rs. 150000/- for second loan)

Manek Amit

Manek Amit (Expert)
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11 January 2011 for the first loan independently interest should not exceed Rs. 30000 while for combined interest of both loan
total interest should not exceed rs. 150000