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interest u/s 24 of the income tax act

CA Madhu Soodan Tapuriah (Practising Chartered Accountant) (156 Points)

04 October 2009

the assessee ia already having a self occupied house property and planning to buy another one (in another city for self occupation) with borrowed fund.query is whether the interest paid on loan for acquiring the second property can be claimed u/s 24 of the income tax act ?

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18 Replies

CA Manish K Dhoot (CA, B. Com, NCFM, CPCM) (5015 Points)
Replied 04 October 2009

Yes, it is allowed

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BHAGYESH RAVANGE (C.A Job) (1528 Points)
Replied 04 October 2009

Yes it can be allowed as deduction u/s 24

M.ASHOK KUMAR (STUDENT) (32 Points)
Replied 04 October 2009

It cannot be allowed under section 24.

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 04 October 2009

It is allowed under section 24

NAGESWARA RAO (MBA (FIN).CS EXECUTIVE PROGRAMME) (43 Points)
Replied 04 October 2009

Where the person has occupied more than one house for residential purpose , only one house is treated as self-occupied and other house will be treated as deemed letout..........(according to assesse choice). as per section u/s 24(b), interest on borrowed capital deductible.......

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pankaj (International Tax consultant) (66 Points)
Replied 04 October 2009

I agree with Mr. Nageswara Rao. When A assesee has more then 1 self occupied house, assesee can claim self occupied house only for 1 house at his option

(Guest)

I agree with Nageshwara rao that only one house would be taken self occupied

ashish gupta ( student) (1922 Points)
Replied 05 October 2009

In Any case interest will be allowed

Dintakurthi Tirumala (CA FINAL) (15994 Points)
Replied 05 October 2009

yes, interest on loan borrowed for the purpose of purchase or construct a house is allowable as deduction U/S sec 24 of income tax there is no limit for no of houses or no of loans but maximum interest deduction allowable is rs.150000/-

Sunil Liladhar Kotak (Manager (F & A)) (2025 Points)
Replied 05 October 2009

Section 23 (2) Where the property consists of a house or part of a house which

(a) is in the occupation of the owner for the purposes of his own residence; or

(b) cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him,

the annual value of such house or part of the house shall be taken to be nil.

Thus the value of one house should be taken as nil at the option of the assessee & other can be termed as the Let out

Further the limit of 150000/- for the purpose of Interest deduction is applicable to the Self occupied house property & not to the one which is let out.

Thanks,

sunil

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Rohan (Article) (31 Points)
Replied 05 October 2009

yes it is allowed as per the choice of the assessee one house is treated as deemed let out

Ridhi (Student) (103 Points)
Replied 05 October 2009

yeah intt is allowed upto a max. of Rs.150000 for purchase or construction of house... Moreover, deduction on intt is allowed on ACCRUAL basis, i.e. even if not actually paid u claim deduction...u/s 24.

nikhil (article) (27 Points)
Replied 05 October 2009

Originally posted by :Madhu Soodan Tapuriah
"	the assessee ia already having a self occupied house property and planning to buy another one (in another city for self occupation) with borrowed fund.query is whether the interest paid on loan for acquiring the second property can be claimed u/s 24 of the income tax act ? yes u can avail it u/s 24	"