Examption for interest on housing loan

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This query is : Resolved

rakesh sharma (Querist)

17 December 2007
Mr X was in employment of company from april 07 to july 07.

For current year 2007-08 the int payable
forloan on self occupied property of Rs 1.25 lacs.

Should the examption for interest be pro-rated for four months (april-july07)i.e the period during Which he was employed with company or the entire amt payable as interest during Fy 2007-08 be allowed as examption.

R.V.RAO

R.V.RAO (Expert)

17 December 2007 IF THE COMPANY OBTAINS FROM LENDER OF HOUSING LOAN , A CERTIFICATE SHOWING ACTUAL INTEREST PAID FOR THE YEAR, THERE IS NO BAR FOR ALLOWING ENTIRE INTEREST DEDUCTION.
BUT THE FORM 16 ISSUED BY THE COMPANY SHOULD STATE THE ACTUAL DEDUCTION ALLOWED,SO THAT THE NEXT EMPLOYER WILL NOT ALLOW THE SAME DEDUCTION FOR A SECOND TIME.
R.V.RAO

K V Subba Rao

K V Subba Rao (Expert)

18 December 2007 The period of four months from Apr to Jul 07 is part of the current FY. Now we are in Dec 07. So the employee would be able to get and produce to you interest recovery SCHEDULED but not ACTUAL for the current FY which extends upto Mar 08

To be on safe side, you better take only proportionate amount. Any way you are subjecting to tax only salary for four months and not for entire year

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