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Deduction of interest on loan u/s 24(b)
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?
Replies (7)
No. only Rs. 25000/- can be claimed under sec. 24(b) of IT act.
Actually what is the benefit of take another loan to pay interest of first loan?????
Deduction only available under 24(b) if the loan is taken for construction of house property second loan do not qualify for deduction
But i ivestigated it further u suggestion is not matching with circular no. 28 issued by CBDT dated 20/8/1969
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%.
Ok but accordingly in this matter i m more intersted about knowing the treatment of that 6000 and not the rate of int
anyways thnx for ur suggestion
anyways thnx for ur suggestion
In addition to above reply, interest of 6000 is not allowable
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