Income from house property

There are 2 deductions available for income from house property ie., standard deduction @ 30%, Interest on loan taken for house. These deductions are not available when the house is under construction. Further deduction of interest incurred during construction period can be claimed in 5 installments starting from the year of completion of construction.

is there any maximum amount that can be claimed in those 5 installments?

pls tell me thge section as wel .

thank you

even i wud like to know the same

  1)  30% of Nav is allowed as deduction under section 24(a)

      a) This is flat deduction and is allowed irrespective of the actual expenditure incurred.

      b) In case of self occupied property where the annual value is nil, the assessee will not be entitled to deduction of 30%, as the annual value itself is nil.

2)  Interest on borrowed capital is allowed as deduction under section 24(b)

     a) Interest payable on loans borrowed for the purpose of acquisition, construction, repairs, renewal or reconstruction can be claimed as deduction.

     b) Interest payable on a fresh loan taken to repay the original loan raised earlier for the aforesaid purposes is also admissible as a deduction.

     c) interest relating to the year of completion of construction can be fully claimed in that year irrespective the date of completion.

     d) Interest payable on borrowed capital for the period to the previous year in which the property has been acquired or constructed, can be claimed as deduction over a period of five years in equal instalments commencing from the year of acquisition or completion of construction. 

No Limit for Deduction of Pre-Construction Period Interest Which shall be claimed in  installments

IF THE HOUSE IS NOT SELF OCCUPIED THEN YOU CAN CLAIM WHOLE INTEREST AMOUNT NOT RESTRICTING TO 150000.

no limit in case of let out

but

there is limit in case of self occupied property

total pre-construction+post construction interest cant exceeds Rs 30000/150000 as the case may be

The maximum amount of interest permissible in cases of  self-occupied property is Rs.1,50,000 (in respect of funds borrowed on or after 01.04.1999). Interest upto Rs.1,50,000 is deductible if the following conditions are satisfied:

• Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property;
• the acquisition/construction should be completed within 3 years from the end of the financial yearin which capital was borrowed; and the person extending the loan certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house or as refinance of the principal amount outstanding under an earlier loan taken for such acquisition or construction.

further w.ef  from AY 14-15 

U/s 80EE govt has provided additional deduction  of Rs 100000 for loan of house property provided some condition satisfy i.e loan amount not exceed 25 lakhs, value of property not exceed  40 lakhs