Relief under section 24b

457 views 3 replies

Roli

manager

39 Points Joined September 2014

I am in service and staying in Varanasi,U.P (due to my profession) in a rented accommodation. I have booked a flat in Noida in April 2011(FY 2011-12). Simultaneously, i also availed of a home loan from bank in April 2011 for which i am paying EMI. The property is still under construction and i don't have any other house property in my name. The flat is expected to be completed and possessed by me in Year 2015-16 only(after 3 FYs from FY of availing home loan). My question is "What is the maximum limit of tax rebate under section 24b (for FY 2015-16) will i get in two scenarios", A) If the flat remains vacant for the whole of 2015-16 as i may not be able to put it on rent. (B) If i am able to let out the property for full or part of the FY 2015-16 Assume that i will continue to reside in a rented accommodation in Varanasi due to my profession

Replies (3)

CA Meetali

Practicing Chartered Accountant

145 Points Joined May 2014

In the first scenario maximum deduction allowable would be, amount of interest or Rs. 30000, whichever is lessor. However if the construction got completed within 3 years you can avail deduction of interest upto Rs 150000.In the second scenario their is no limit for deduction of interest.