Rajesh Kumar Gupta (Senior Divisional Manager) (714 Points)
23 February 2015
Deepak Gupta
(CA Student)
(15922 Points)
Replied 23 February 2015
The principal repayment of loan taken for repairs of the HP does not qualify for deduction u/s 80C. Deduction is allowed only for the purposes of purchase or construction.
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Further, in case of a self occupied HP, when the loan is taken for repairs, actual interest payable subject to maximum of Rs. 30,000 will be allowed as deduction u/s 24(b).
Vishal Goel
(Chartered Accountant)
(1688 Points)
Replied 24 February 2015
Hello,
If you have taken a home improvement loan for reconstructing or repairing of your property, you are eligible for a deduction under Section 24(b). However, there is a restriction on the amount—Rs 30,000 per fiscal, irrespective of whether it is self-occupied or you rent it out. In case you are already serving a home loan and are availing of the full tax benefit limit on interest paid, that is, Rs 1.5 lakh, then this additional benefit won't be available to you.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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