Interest ded u/s 24(b)

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CMA Swati Agarwal (Querist)
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14 March 2017 Dear Sir,
The loan for acquiring house property has been obtained during FY 2012-13. The possession for the same has been received in June 2016.
How much interest is allowed to be deducted for calculation of "Income of House Property" u/s 24(b). The property is self occupied.
Kindly guide. The issue is urgent.
Thanks in advance.

CA Gopal Somani

CA Gopal Somani (Expert)
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15 March 2017 Maximum Limit of deduction under section 24b

1) In Let Out Property/Deemed to be Let Out – No maximum limit

2) Self Occupied House (SOP) – Rs. 2,00,000. (1,50,000 for A.y 2014-15 and before)

In the following cases the above limit of Rs 2,00,000 for SOP shall be reduced to Rs. 30,000

– Loan borrowed before 01-04-1999 for any purpose related to house property.
– Loan borrowed after 01-04-1999 for any purpose other than construction or acquisition.
– If construction/acquisition is not completed within 5 years from the end of the financial year (3 years till financial year 2015-16) in which capital was borrowed.

In your case construction was completed within 5 Years on Loan so Rs. 200000 Deduction is allowed.

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