Interest on housing loan u/s 24

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This query is : Resolved

Jagadish (Querist)

01 April 2015 Hi,

As per income tax act sec 24, where any property acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital is allowed as deduction from Income.

Presently, limit on interest on house property is Rs.1,50,000/- and increased to Rs.2,00,000/-.

My question is, act says "the amount of deduction under this clause shall not exceed 1.5 Laks" but doesn't say amount paid or 1.5 lak which ever is less. i.e if any person pays lesser amount say 1Lakh. can he claim deduction of 1.5 lak.

please advice whether he can claim 1.5 lak or not. please share any case laws or any information in this regard.

thanks in advance.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

01 April 2015 The limit is incase if some1 pays 2 lakhs as int on sop and satisfying all condition in it then the limit is restricted to 1.50 lakhs only as that is upper limit.

if some1 pays only 1 lakhs interest as actual payment then how can he claim 1.50 lakhs?

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

01 April 2015 Section 24(b) doesn't say that interest should be 'PAID' ,hence the wordings viz., THE AMOUNT OF DEDUCTION UNDER THIS CLAUSE SHALL NOT EXCEED has been put in the proviso to the said section.

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Jagadish

Jagadish (Querist)

02 April 2015 that means he can claim only to the extent of amount paid.

thanks for reply..

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