Interest u/s 24 is allowed to an assessee who borrows loan for purchase or construction or repair or renewal (read renovation ) or reconstruction of the house property , income of which is assessable under the head "income from house property".
Answer given by Narayan is perfectly correct.
Deduction of Housing loan interest:
1. For self occupied property - 1.5 Lakh limit applies if house is constrructed/purchased after 1.4.99
2. If husband and wife co-owns the property - then each one can claim 1.5 L for self occupied property
Answer given by Narayan is perfectly correct.
Deduction of Housing loan interest:
1. For self occupied property - 1.5 Lakh limit applies if house is constrructed/purchased after 1.4.99
2. If husband and wife co-owns the property - then
Thank you all for replying to my query, the answer to the question posted by me was available in the newspaper DNA, 25th November. It is clearly stated that the limit is for an individual, i.e husband and wife can claim Rs.1.5 lakhs individually
Condition is Wife should own it from her own income. if property is just registered in the name of both it may be the case the husband gifted it to her. than it will not be regarded as transfer and husband will be a deemed owner u/s 27 and only husband can claim interest on housing loan.
Yes... Both the persons can claim exemption to the maximum of Rs. 150000 per person.....
Dear Divalicious...
Pls Note....
As per section 24(b), Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within three years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees.....
So the limit is for total interest deduction and for not individual house property...
CAclubindia
