Home loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2016 Dear Sir,
What are the maximum allowed limit in fy 2015-16, for the payment of following -
1. Prinicipal amount of home loan -----
2. interest of home loan ----

Please clarify.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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28 July 2016 Principal amount- Rs. 1,50,000/- (Covered in sec 80C)
Interest- Rs. 2,00,000/- (under loss from house property income if it is self occupied. If let out, actual amount can be taken as a deduction).

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2016 This 2 lacs Rs. is allowed in a single financial year
or
this is whole amount or interest ?

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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28 July 2016 Whatever the amount actually paid by the assessee. If the house property is self occupied, the deduction will be restricted to Rs. 2,00,000 for FY 2015-16 (I.e, AY 2016-17).
If it is let out, the deduction will be the whole amount paid as interest by the assessee.

Pls refer sec 24 (1) (b).

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2016 that means every year asseessee can take deuction of Rs . 2 lacs in respect to home loan interest ?

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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29 July 2016 Yes. If he has paid it.
But if the loan is taken for renovation, it is restricted to Rs. 30,000 only.