Interest on housing loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2013 Dear All,

An individual has taken a PF loan for construction of residential building. i want to know whether interest on PF loan is allowed under sec 24b for that particular house which is self occupied.There is no document with him for the loan applied or a sanction letter. The loan amount is directly credited into the salary account. Pay slip gives the details of interested paid during the year. He has ignored the Principal as the 80C benefit exceeds Rs. 1 lac.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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31 July 2013 Interest on PF loan can be claimed u/s 24(b) provided the purpose given in the loan application is 'residential house construction'. If it is so, try to get copies of application and sanction letter from PF office. Interest certificate is also a must to substantiate the claim ,if called upon by the income tax authorities upon a proper notice to scrutinize your case to complete the income tax assessment.

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