Home loan

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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)

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)

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)

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.

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