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Deduction of Rs. 150000 under house property

CA Mukul Mittal (CA in practice) (384 Points)

02 August 2011

whether the deduction of1,50,000/- for interest on borrowed capital be allowed in case the house is totally demolished and constructed thereafter???/

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10 Replies

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 02 August 2011

Hi , Yes in my opinion in case of reconstruction this much deduction is permissible in case of self occupied house and in any other case even more deduction is allowed.

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Sanat kumar (Chartered Accountant) (265 Points)
Replied 02 August 2011

You can get the deduction u/s 24(b). Interest on borrowed capital is allowable as deduction on accrual basis if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property.

Pankaj Arora (Job) (150 Points)
Replied 02 August 2011

Agree with Sanat..........................

Sudhanshu Prajapati (Article) (981 Points)
Replied 02 August 2011

Originally posted by : Sanatkumar
	You can get the deduction u/s 24(b). Interest on borrowed capital is allowable as deduction on accrual basis if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property.

agreed with

tanuj sharma (CA-PCC) (47 Points)
Replied 02 August 2011

for claiming deduction of interest on borrowed capital interest from the relative is required.

Yes u can claim deduction upto the taxable limit i.e 1.6lac/1.90lacs.

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CA Raman Kumar (job) (132 Points)
Replied 02 August 2011

Dear Mukul,

According to Section 24(b) of Income Tax Act'1961 maximum amount of deduction claim under this section is Rs.1,50,000.00 forself occupied house and no limit for let out house

Deduction is available for acquisition,construction,repair,renewal& reconstruction.

CA Mukul Mittal (CA in practice) (384 Points)
Replied 02 August 2011

well, the deduction for Rs. 150000/- is available for the construction..is it not a case of re-costruction???

tanuj sharma (CA-PCC) (47 Points)
Replied 04 August 2011

interest certificate is required from the relative

AJEET SINGH SHEKHAWAT (ARTICLE ASSISTANT) (22 Points)
Replied 05 April 2012

my letout property is situtated at jaipur and loan was taken on this property at interest is 453153 then how many deduction under the income tax act sec 24(b)..plz sugest me..

Shruti (AM-Finance) (32 Points)
Replied 06 April 2012

INTEREST ON BORROWED LOAN(U/S.24(b)): FOR SELF OCCUPIED PROPERTY a. If Property is acquired or constructed with loan taken after 01/04/99 and construction is completed within 3 years from the end of the financial year in which the capital was borrowed – Rs.1,50,000 or actual interest paid/payable whichever is less is deductible. b. If new housing loan is taken for repayment of old loan (old loan taken after 1/4/99) – Rs.1,50,000 or actual interest paid/payable whichever is less is allowed as deduction. c. If Property is acquired or constructed with loan taken before 01/04/99, Rs.30,000 or actual interest paid/payable whichever is less is allowed as deduction. d. If loan taken for Repairs, renewal, reconstruction of property, Rs.30,000 or actual interest paid/payable which ever is less is allowed as deduction. FOR LET OUT PROPERTY, actual interest paid/payable can be claimed as deduction. ONLY OWNER OF THE HOUSE PROPERTY CAN AVAIL THE ABOVE DEDUCTIONS.