Deduction in respect of interest on housing loan

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Rachit (Querist)

17 April 2013 X has purchased a plot of land and has taken housing loan for acquisition of the same. He constructs a house upon it which is very small in comparison to the plot of land.
Can X now claim deduction u/s. 24(b) in respect of housing loan taken for purchase of the plot land.
Is there any yardstick upon the size of house to be constructed?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

17 April 2013 There is no any yardstick upon the size of house to be constructed etc.... for avail deduction u/s 24(b) and 80C. The only one condition to claim deduction under such section(s) is the purpose of the loan should be construction or purchasing of residential house property and the loan amount must and should be utilise for such purpose only.

Is if you used entire loan taken for the purpose of construction of residential house property then you can claim deduction u/s 24(b) and section 80C for principle amount of repayment.

OM SAI SRI SAI JAI JAI SAI

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