Interest ded u/s 24(b)

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CMA Swati Agarwal (Querist)

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)

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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