Deduction of Interest U/s 24(b) of IT Act

yes, deduction of interest is granted on paid basis...............................

Yes Ravi gupta is right u will get the deduction of the interest u/s 24(b).

its not the condition along with intrest u have to pay the principal amount...

interest under sec. 24 is deductible on accrual basis ..

ya deduction will be allowed.

interest can be claimed as deduction

According to the provisions of the Income tax Act,1961, if the house property is under self occupancy then interest can be claimed upto Rs.150000/-. However, if it is let out or deemed to be let out then total interest component is allowed as deduction u/s 24(b) under accrual basis.

Hence, in this case,after having regard to the above provisions, we can infered only based upon the status of house property i.e self occupied or let out

yes u can claim it

but could not be allow to avail deduction u/s 80C

 rahul khatter is right.

allowance of interest u/s 24(b)

     ** preconstruction period interet (interest of p.const period/5,from p.y in which the compleation 

         of construction)

    ** after compleation, interest of p.y

so it has depends upon compleation of construction of house propery ,

assumed that house is compleated, then interest to be allowed as interest of p.y,even if principle is not  paid .

yes deduction u/s 24 (b) is allowed to you of interest . it is allowed on due basis . but deduction u/s 80c not allowed because it allowed on payment basis

interest alone can dedect u/s 24b, principal repayment can claim u/s 80c

According to Income tax act 1961, principle portion of the Loan is covered under section 80C, and interest is allowed as a deduction under section 24(b). Section 24(b) is on accrual basis. if the property is a let out there is no threshold limit , if it is for a self occupied property subject to max of Rs.150000/-. Coming to the principle portioin, since principle is covered under section 80 C, it has to be allowed only when it is actually paid subject to maximum of Rs.100000/-.

The Section 24(b) of the Income Tax Act, 1961 is applicable on Home loan for purchase of house or construction of the house property. You can avail a deduction of up to Rs. 1,50,000 of you total tax liability, Also reconstruction or renewal or repairs is eligible for deductions under the said section.
 

Terms and conditions for availing Tax benefits on Home Loans

1. Tax deductions can be claimed on housing loan interest payments, subject to an upper limit of Rs 150,000 for a financial year. Interest on the fresh loan can be claimed as a deduction, subject o the stated upper limit.
    
2. An additional loan for extension/addition to the same house and the person's deductions on the existing loan are less than Rs 150,000; he can claim further benefits from the additional loan taken, subject to the upper limit of Rs 150,000 for a financial year.
    
3. Tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only when the payment is made. If a person fails to make EMI payments, he cannot claim tax benefits for the same.
    
4. According to the Income Tax Act, only the person who has taken the loan can claim tax rebates.
    
5. The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs 150,000.
    
6. A husband and wife, both of whom are tax-payers with independent income sources, get tax deduction benefits, with respect to the same housing loan; to the extent of the amount of loan taken in their own respective name.
    
7. If a person buys a house and sells it within the same year/after 3 years, and if any profit is made, then a capital gains tax liability arises on the same for which the individual is liable to pay short-term capital gains tax since the sale took place in the same year. But, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen.
    
8. If it is proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits, then tax benefits will not be allowed and benefits, previously claimed, will be clubbed to the income and taxed accordingly.
    
9. Tax benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans. This means that if you have already availed of one loan to refinance the original loan and want to now avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible. This is because the Section 24 (1) only talks of the second loan and not of subsequent loans. Even if you take the second loan at a rate of interest higher than the original loan, you will be eligible for a tax rebate on the second loan.