housing loan principal and interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 April 2011 dear sir,

My sales manager constructed a house with loan. he wants calim exemptions. i was exempted Rs.150000/- towards interest. he came to know from his friends circle, on principal amount(paid during the year) 20% is eligible for expemption. what is reality. please guide me.

CA. Deepak Narula

CA. Deepak Narula (Expert)
Follow

21 April 2011 Interest is allowed u/s 24(b) in computing the income under house property and will be allowed up to a maximum of Rs. 150000/- for self occupied house and principle amount is allowed u/s 80C up to overall limit provided in section 80C i.e. Rs. 100000/-. There is no such thing as 20% principle amount as deduction.

Ratan Sharma

Ratan Sharma (Expert)
Follow

21 April 2011 Agree with expert. There is one another provision . Interest paid during preconstruction period is allowable in next 5 years i.e. 20% each year from the year in which the house construction is completed. your employee might have been talking about this.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok