Dear All,
Please tell me what is the limit amount for tax exemption under Interest on Home Loan.
CA Harshal Totla
(Chartered Accountant)
(2229 Points)
Replied 22 June 2016
Kuldipsinh Jadeja
(Job)
(357 Points)
Replied 22 June 2016
Deduction of interest u/s 24(b) of Income Tax Act is limited to following amount :
In the following cases the above limit of Rs 2,00,000 for SOP shall be reduced to Rs. 30,000
subhash kumar jha
(PROFESSION)
(445 Points)
Replied 22 June 2016
Not tax exemption but its deduction under section 24b i.e.2,00,000 in case of self occupied property and not limited for other property.
Rammi_RP Rawat
(Accountant )
(386 Points)
Replied 22 June 2016
The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs (increased in Budget 2014 from 1.5 Lakhs to Rs. 2 Lakhs).
subhash kumar jha
(PROFESSION)
(445 Points)
Replied 22 June 2016
As Mr harshal Totla g said three year , that has been increased to five year w.e.f. assessment year 2017-18.
CA Bhart Porwal
(Self Practice as Partner )
(51 Points)
Replied 22 June 2016
Dear Somya
1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property.
(2) The deduction under sub-section (1) shall not exceed fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2017 and subsequent assessment years.
(3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—
(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2016 and ending on the 31st day of March, 2017;
(ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees;
(iii) the value of residential house property does not exceed fifty lakh rupees;
(iv) the assessee does not own any residential house property on the date of sanction of loan.
(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year
Soumya
(Senior Accounts Executive)
(235 Points)
Replied 29 June 2016
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