How to get deduction u/s24 while filing itr?

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Jiten Gupta

Jiten Gupta (Querist)
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22 July 2013 Dear Esteemed Experts,

Please throw light of query captioned in subject!!

With Best Regards

Hemant Kumar

Hemant Kumar (Expert)
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22 July 2013 U/s 24(b) of the Income Tax Act-1961, deduction up to Rs. 150,000/- is admissible against the interest payable on the loan availed for purchase / construction of the self occupied house property.[However, the acquisition or construction of the house property should be completed within 3 years from the end of financial year in which home loan was taken; otherwise, the deduction would be restricted to Rs. 30,000/-]
In respect of loan taken prior to 01.04.1999, the deduction can’t exceed Rs. 30,000/-.
Pre-construction period Interest [Loan taken against/for under construction property]: The interest paid during the period the house property is under construction is not deductible in the year of payment. Interest in respect of pre-construction period is deductible in five equal annual installments commencing from the previous year in which the house is constructed/acquired. For this purpose “pre-construction period” means the period commencing on the date of borrowing and ending on March 31 immediately prior to the date of completion of construction /acquisition.
In respect of self occupied house property, it may be noted that for purchase / construction, interest deduction is admissible up to Rs. 1.50 Lacs whereas there is a ceiling of Rs. 30,000/- only in respect of loan taken for Repairs/ Renewal or Reconstruction.

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