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deduction of interest of housing loan

SUNNY (STUDENT CS) (377 Points)

26 March 2010

suppose in financial year 2009-10 my annual income from business is 450000/-

& annual deduction is under section 80 c is 98850/-

& interest of housing loan is 95000/-

how much deduction i can claim in financial year 2009-10. & what would the tax amount

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6 Replies

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 26 March 2010

Income from Business 450000

Income from house property (95000)

Net Income 355000

less deduction u/s 80 c 98850

Net Taxable income 256150

Calculation of Tax

First 160000 Nil

Balance 96150*10% 9615

add: education cess @ 3% 288

Net Tax Payable 9903

Rounded off Rs. 9900

regards,

ratan

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R.Suresh (Sr. Executive) (394 Points)
Replied 26 March 2010

Hi Deol,

Now you going to show 2 heads of Income as below,

1. Income from House Property.

2. Income from Business.

In income from house property you have showing minus of Rs. (95000/-)

In income from Business is Rs. 450000/-

The Gross total income for you is Rs 355000/-

The deduction u/s 80C is Rs 98850/-

The Net Taxable income is Rs. 256150/-

The Tax and Education Cess for Taxable income is Rs 9903/-

Note: For you deduction u/s 80C is Rs 98850/- and also The interest on Housing loan for Rs 95000/- both can be taken for your tax calculation.

C.Balaji (Learner) (1867 Points)
Replied 26 March 2010

Dear Deol Sunny.........

Agree with above.........

The Interest on Housing loan paid can be claimed only after the completion of construction.....i.e. Precosntruction Interest can be claimed in five installments from the year in which the construction is complete (when it is let out or self occupied).........