I have undergone an agreement with Greater Noida Industrial Development Authority (GNIDA) that they let me construct a house at the cost of rs. 30 lakhs + interest Rs. 4 Lakhs.
Total Cost = Rs. 34 Lakhs to be paid in 8 half yearly instalments.
I have not taken loan from any financial institution. Instead i will pay instalments from my own sources.
But as total cost of house comprises interest amount now my question is that whether I am entitled to claim deduction of interest on borrowed capital of Rs. 1,50,000 p.a. us 24(b) of the Income Tax Act, 1961.
21 July 2009
Sec 24(b) specifically mentions that the assessee can claim deduction under sub-section (2) only if the assessee has taken a fresh loan and shall provide a certificate from the borrower.
As in this case no lender or laon is involve you will not be able to calim deductions u/s 24(2).
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