Previously home loan is taken for deemed Let out property for purchase of home.
And second Home loan is taken for repairs for deemed let out property.
For this, whether interest is deductible u/s 24(b) ??
Further, whether principal component is available as deduction u/s 80c ?? Thanks in advance.
As per Section 24, the Income from House Property shall be reduced by the amount of Interest paid on Home Loan where the loan has been taken for the purpose of Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a Residential House Property.
The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs .
Deduction u/s 80C available for Purchase & Construction of a new house property.
In case you take a home loan for purchase, construction, repair, renewal or reconstruction of your house property – the interest is allowed as a deduction from the Net Annual Value.The total amount allowed towards this deduction for a self occupied house property is Rs 2,00,000 (beginning assessment year 2015-16). In case of a let out or a deemed to be let out property, the entire interest is allowed as deduction under section 24. The interest deduction can be claimed on accrual basis i.e., can be taken as deduction even it was not paid.
The principal component of the loan repiad during the Previous Year will be taken as the deduction u/s 80C.
The principle is allowed in 80c
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