Asha Sharma (Chartered Accountant) (36 Points)
17 December 2009Hey Guys!!! I want to know whether deduction U/s24(b) of Income Tax is allowed if no payment is charged & made towards principal amount of Housing Loan?
Example: Housing loan taken in November 2008 for 50 lakhs. Amount is disbursed by bank. From Nov.08 to March 09 only Intt. is charged by bank & paid by the assessee. No amount towards principal is paid because it was morotarium period.
CMA RAVI GUPTA
(MT in VPL)
(493 Points)
Replied 17 December 2009
yes, deduction of interest is granted on paid basis...............................
Dilip
(Working)
(408 Points)
Replied 17 December 2009
Yes Ravi gupta is right u will get the deduction of the interest u/s 24(b).
CA Rahul Khatter
(Chartered accountant)
(97 Points)
Replied 17 December 2009
its not the condition along with intrest u have to pay the principal amount...
interest under sec. 24 is deductible on accrual basis ..
MUTHUSAMY
(CA FINAL & ACS FINAL)
(253 Points)
Replied 17 December 2009
interest can be claimed as deduction
Vijay Kumar.B
(A learner)
(185 Points)
Replied 17 December 2009
According to the provisions of the Income tax Act,1961, if the house property is under self occupancy then interest can be claimed upto Rs.150000/-. However, if it is let out or deemed to be let out then total interest component is allowed as deduction u/s 24(b) under accrual basis.
Hence, in this case,after having regard to the above provisions, we can infered only based upon the status of house property i.e self occupied or let out
Archit Goyal
(Learning Professional)
(344 Points)
Replied 17 December 2009
yes u can claim it
but could not be allow to avail deduction u/s 80C
sivaphythogarus
(student - final(new))
(34 Points)
Replied 17 December 2009
allowance of interest u/s 24(b)
** preconstruction period interet (interest of p.const period/5,from p.y in which the compleation
of construction)
** after compleation, interest of p.y
so it has depends upon compleation of construction of house propery ,
assumed that house is compleated, then interest to be allowed as interest of p.y,even if principle is not paid .
NARENDER PAWAR
(CA final Student)
(337 Points)
Replied 17 December 2009
yes deduction u/s 24 (b) is allowed to you of interest . it is allowed on due basis . but deduction u/s 80c not allowed because it allowed on payment basis
tajsenthil
(student)
(34 Points)
Replied 17 December 2009
interest alone can dedect u/s 24b, principal repayment can claim u/s 80c
VIGNESH
(Manager Finance &Accounts)
(327 Points)
Replied 17 December 2009
According to Income tax act 1961, principle portion of the Loan is covered under section 80C, and interest is allowed as a deduction under section 24(b). Section 24(b) is on accrual basis. if the property is a let out there is no threshold limit , if it is for a self occupied property subject to max of Rs.150000/-. Coming to the principle portioin, since principle is covered under section 80 C, it has to be allowed only when it is actually paid subject to maximum of Rs.100000/-.
Airody Manjunatha Alse
(ca)
(100 Points)
Replied 17 December 2009
The Section 24(b) of the Income Tax Act, 1961 is applicable on Home loan for purchase of house or construction of the house property. You can avail a deduction of up to Rs. 1,50,000 of you total tax liability, Also reconstruction or renewal or repairs is eligible for deductions under the said section.
Airody Manjunatha Alse
(ca)
(100 Points)
Replied 17 December 2009
Terms and conditions for availing Tax benefits on Home Loans
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
