interest on loan for house property

This query is : Resolved

Harikrishnan (Querist)
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17 May 2011 U/s 24 of Income Tax Act 1961 deduction is allowed for Interest for Loan taken for purchase, construction, renovation or improvement of house property. My query is

1.What amount is allowed as deduction:
a) Amount paid during the financial year as interest or
b) Amount payable during the financial year as interest

2.If it is the amount payable then when should the assessee obtain a certificate from the lender of loan? Is it at the begining of the financial year or at the end?

U S Sharma

U S Sharma (Expert)
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17 May 2011 1. b) amount accured during the financial year as interest

2. at the end of year, the assessee has to obtain a certificate from the lender certifying the amount of interest accured.