Interest deduction under section 24

This query is : Resolved

pkkapoor (Querist)
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10 March 2009 I have paid RS 15000 towards prepayment penalty for shifting (June 2008)house building loan from one bank to another. Please advise:

(1) Whether prepayment penalty can be treated as interest and allowed deduction under section 24 of I T Act.

(2)Can I Claim deduction under section 24 of I T Act towards interest paid to my earlier bank upto May 2008

(2)Can I Claim deduction under section 24 of I T Act towards interest paid to my latter bank upto June 2008 to March 2009

CA. MITHUN KHATRY

CA. MITHUN KHATRY (Expert)
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10 March 2009 1. no
2. yes
3. yes

K V Subba Rao

K V Subba Rao (Expert)
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23 January 2010 Please check the following link:

http://www.apnaloan.com/home-loan-india/taxbenefitsonpreclosurecharges.html

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