Home loan interest deduction under sec 24(b)

Tax queries 6669 views 10 replies
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AFP
93 Points Joined January 2011

A assessee has a home loan for self occupied residential property, for which he is claiming deduction upto 1.5 lakh from his income. If the same person takes another loan for repairs of the same house, can he cliam the interest on this second loan (upto 30k) simultaneously along with the loan for construction of property?


In this case the total deduction for the person comes to 1,80,000 (max). Is it possible to claim deduction for loan for construction and loan for repair at the same time?

PS: Repayment of loan for construction has been running for 6 years, and the loan for repair is new.

Thanks

Ashwin

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On 18 February 2011 at 14:38 Report
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Learner
3134 Points Joined September 2009

 

No I don’t think its permissible at the same time.

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On 18 February 2011 at 14:41
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Tax Professional and in Service
1795 Points Joined June 2009

Hi

 

Not possible. The limit of 150,000 is comprehensive whether u take one loan or 100 and whether u take one loan for purchase and second for repairs. So limit of 150,000 is maximum for all purpose of loans.

 

Regards,

Manoj B. Gavali

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On 18 February 2011 at 14:47
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AFP
93 Points Joined January 2011

Thanks for the prompt replies.

It would mean that for a self occupied property

interest on loan for construction + interest on loan for repair + pre EMI/5 <= 150000

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On 18 February 2011 at 15:19
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Ca-Final Article.
565 Points Joined June 2010

Intt on loan for Repair of house is not allowed only intt/. for cons. or purchase of house is allowed............

As Per Sec 24b...............

So in this way you will noty be able to claim ded. on any amount of  intt. od loan you took for cons. of house.............

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On 19 February 2011 at 11:40
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Life Is just an Illusion...!!
4573 Points Joined August 2010

Only a maxmimum of Rs. 1.50lakhs is permissible irrespective of number of loans As said by manoj....

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On 24 February 2011 at 09:09
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article
30 Points Joined January 2010

a maximum of 150000 would be permissible u/s 24(b).

further the construction shud b completed within 3 yrs frm d yr d loan was taken.

here 6 yrs info is relevant..

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On 17 August 2011 at 21:13
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lecturer
25 Points Joined March 2007

IS interest on loan taken from relative for purchase of house is permissible for deduction u/s 24?

 

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On 27 May 2012 at 12:16
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Assistant Manager (F&A)
37 Points Joined June 2010

No probs u can take loan from your relative and you will get deduction under Sec-24.

 

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On 28 May 2012 at 23:30
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Practising CA CS
398 Points Joined September 2007
Originally posted by : Rahul Mhabde

IS interest on loan taken from relative for purchase of house is permissible for deduction u/s 24?

 


yes....

Only u have to obtain a valid certificate of Interest from the borrower...

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On 28 May 2012 at 23:55
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Practising CA CS
398 Points Joined September 2007
Originally posted by : Rahul Mhabde

IS interest on loan taken from relative for purchase of house is permissible for deduction u/s 24?

 


yes....

Only u have to obtain a valid certificate of Interest from the borrower...

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On 28 May 2012 at 23:56

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