whether able to avail deduction u/s 24(b) or not
This query is : Resolved
21 July 2009
Dear sir/Madam,
I have undergone an agreement with Greater Noida Industrial Development Authority (GNIDA) that they let me construct a house at the cost of rs. 30 lakhs + interest Rs. 4 Lakhs.
Total Cost = Rs. 34 Lakhs to be paid in 8 half yearly instalments.
I have not taken loan from any financial institution. Instead i will pay instalments from my own sources.
But as total cost of house comprises interest amount now my question is that whether I am entitled to claim deduction of interest on borrowed capital of Rs. 1,50,000 p.a. us 24(b) of the Income Tax Act, 1961.
I have undergone an agreement with Greater Noida Industrial Development Authority (GNIDA) that they let me construct a house at the cost of rs. 30 lakhs + interest Rs. 4 Lakhs.
Total Cost = Rs. 34 Lakhs to be paid in 8 half yearly instalments.
I have not taken loan from any financial institution. Instead i will pay instalments from my own sources.
But as total cost of house comprises interest amount now my question is that whether I am entitled to claim deduction of interest on borrowed capital of Rs. 1,50,000 p.a. us 24(b) of the Income Tax Act, 1961.
21 July 2009
Sec 24(b) specifically mentions that the assessee can claim deduction under sub-section (2) only if the assessee has taken a fresh loan and shall provide a certificate from the borrower.
As in this case no lender or laon is involve you will not be able to calim deductions u/s 24(2).
As in this case no lender or laon is involve you will not be able to calim deductions u/s 24(2).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Off Market debit and credit transaction
- Itr 1 processing
- Share accounting-->fifo - capital gain - period as per fifo?
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- ITR returnFY25-26
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Article ship defecit
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
