Mortage loan

As said by you that your client has a bulding and he has rented to HDFC bank, therfore , if he is owner of buiding then rental income will be assesesd under the head Income from house property.

Now he has mortaged the above building and interest is paid by your client, therefore,if the loan is taken for the purpose of construction, repair, renewal or reconstruction of the property then only it will be allowed as a deduction under sec24.otherwise not.

Also the maximum amount of deduction which can be claimed by your client will be Rs 30000 under sec24.

loan is taken for the purpose of consturction of that building.... why max interest is 30000

Interest paid on housing loan is deductible u/s 24(b) from rental income under the head Income from House Property.

A calculation of “Income from House Property”, in Schedule HP, is made for each property you own. If such a calculation results in a loss, it is allowed to be set off against your income from other heads.

In respect of one self-occupied house the deduction u/s 24 is limited to Rs 1,50,000/-

In respect of let out house , the deduction has no limit...

i do agree with you.. housing loan interest is available for deduction u/s 24. but what about mortage loan.

adding... usually for getting deduction u/s 24 bankers will be providing housing loan interest certificate... when i approached them they told me that for mortage loan we will not give interest certificate... they have given me emi schedule for the same...  can i claim interest based on the emi statement provided by bank... will income tax officers will accept the same?

A home loan is given for the restricted end use of purchase of a property. The payment can only be made directly to the builder or the seller of the property. A mortgage loan is given for an open end use and is given against the lien of a property. The payment is made directly to the borrower, to use as he or she deems fit. There is no monitoring of the end use in this case. In both cases, the property is mortgaged to the lender.

Therefore , for income tax puposes interest deduction  can be claimed on accrual basis upto rs30000 for self occupied property and if property is let out then interest can be claimed without any limit.