I am a Central Govt employee and had availed Departmental House Building advance in 2001. The procedure for recovery for Departmental loans is that the Principal amount if first recovered adn once that is completed, the accrued interest(calculated on outstanding balance at the end of the months) is recovered in further instalments.
My Principal recovery started from 2002 and ended in 2009 September. The interest recovery has started from Oct 09.
The question is can I avail of the benefit of Section 24 of Income Tax act at this stage. The general opinion is that as per Section 24, Interest payable is eligeble for Section 24 benefit, adn that would mean I should have availed the Sectin 24 benefit only during the year of accruals and not now (when it is actually being recovered) There is also a IT board's circular No 363 of 1983 for this.
Is there any other circular in respect of this, OR is there any other remedy to avail income tax benefit at this stage when the interest is being recovered now.
Pl help. Thx in advance
CAclubindia
