Tax query

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Dear Experts

             here is case goes this way once upon a time an assessee takes housing loan but he fails to pay out his interest for the years on one fine morning he get an notification from the insurance company that the loan is matured therefore he pays out those unpaid interest and he asks for claim for the total interes amount paid in the current year including the unpaid interest under section 80c  but his auditor says that he could claim only the interes belonging to the current year alone n not for the failed interes belonging to the other previous years.does an assessee's contention is correct?

I'm very thank ful for those who ans my query.i also request ur goodselves to reply me at the early.

 

Replies (1)

The contention of assessee is not correct. The interest on housing loan is available u/s 24 under the head of income from house property. The interest is allowed on accrual basis for the current financial year. Hence deduction relating to previous years cannot be claimed.


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