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Deduction of interest on loan u/s 24(b)

28 October 2019

while calculating income from house property loan taken for construction of house is 100000 and interest on that is 25000p.a and to pay that interest another loan was raised and the interest on that loan is 6000.p.a will this 6000 along with 25000 can be claimed as deduction?

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7 Replies

Ritwick Bhanusali (student) (127 Points)
Replied 28 October 2019

No. only Rs. 25000/- can be claimed under sec. 24(b) of IT act.

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Rijo John (audit manager) (447 Points)
Replied 28 October 2019

Actually what is the benefit of take another loan to pay interest of first loan?????

MOHIT JOSHI (229 Points)
Replied 29 October 2019

Deduction only available under 24(b) if the loan is taken for construction of house property second loan do not qualify for deduction

Nihal Soni (34 Points)
Replied 29 October 2019

But i ivestigated it further u suggestion is not matching with circular no. 28 issued by CBDT dated 20/8/1969

Kapadia Pravin (17264 Points)
Replied 29 October 2019

If AO observes and come across to know that interest is paid @ 25% p.a. he may ask to justify and most probably he may not allow full Deduction but restrict it to just and fair around 10%.