House propery income

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shibu (Querist)

16 May 2013 Dear Friends,

G A V of Building and land appurtenant thereto is taxed under this head. Please clarify the following:

1. An assessee took a loan for purchase of land (say, one acre)and later constructed a HP. For this HP he took another loan.
Now how much deduction is allowed under section 24(b) ?

2.For a self occupied property, a loan is taken before or on or after 1.4.99 for renovation. Another loan is taken after 1.4.99 and conditions are satisfied to claim enhanced deduction of Rs 1,50,000.
How much amount the assessee can claim as deduction in respect to Interest on Loan ?

Guest

Guest (Expert)

16 May 2013 Section 24 b is applicable to property which includes both land and building.

Your 1 question:
If loan is utilized first for purchase of land and then to the construction of building.
the condition to be satisfied to avail deduction is , property must be constructed with in 2 years from the end of the financial in which capital is borrowed.

Deduction for self occupied house : maximum 150000
And let out : No limit.

2nd question:
The limit of Rs 150000 is maximum and it includes the interest payable on repair.

shibu

shibu (Querist)

16 May 2013 1.So it means interest on loan borrowed for land is also deductible? (2 year from the end of the FY in which loan is borrowed) which text book it is given?

2. Interest on loan borrowed for contruction of SO property supposing Rs 2,00,000 and for repair 30000. Maximum deduction eligible- Rs 1,50,000?

Guest

Guest (Expert)

16 May 2013 Sorry, it is typing mistake ,it is 3 years not 2 years and it is written in act. section 24 b

yes maximum deduction allowed is Rs 150000.

And hope your query is solved now

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