Can get deduction under 24b

Interest Paid towards housing loan:-

The house property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount payable towards interest on borrowed capital is allowed as deduction under u/s 24(b) of Income tax act.

1. We have to note here Interest payable on barrowed capital is allowed (Interest paid is irreverent here).
2. In case of under construction property, Interest will aggregated from the date of borrowing till the end of the previous year prior to the previous year in which the house is completed and allowed in five successive financial years starting from the year in which the acquisition or construction was completed.
3. In case Assesses is owner of more than one residential property, he may exercise an option to treat any one of the houses to be self occupied and the other houses will be deemed to be let out and annual value of such house will be determined as per Section 23(1)(a) of the Income Tax Act, 1961.

How much Interest Deduction allowed U/s 24(b) :-

(a)   In case property is acquired or constructed with capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which the capital was borrowed: Minimum of Actual Interest payable or Rs 1, 50,000/- .

(b)   In case property is acquired or constructed with capital borrowed before 01-04-1999 - Minimum of Actual Interest payable or Rs 30,000/- .

Thanks

With regards

Shankar

Thanks shankar