Deduction under income tax

ITR 514 views 1 replies

Sir,

 

I am facing a problem regarding Income Tax return i.e. can I claim both deduction under section 24(b) and 80EE (150000 and 100000), if possible then how can I show return in this regard.

My Income is 3100000, interest paid on borrow capital excess Rs. 1,50,000/- and also repaired/construction/interest on capital paid excess Rs. 1,00,000.00 in this regard can I claim same amount as deduction Rs. 2,50,000.00 or not

 

Computation of Income 

Income from business or Profession                         4,10,000.00

Income from house property                                     --1,50,000.00

(borrowed Interest)     

Balance Income                                                          2,60,000.00                                 

Less: deduction u/s 80-EE                                      1,00,000.00

Net Taxable income                                                 1,60,000.00

Tax Payable                                                                    NIL 

Further we are awaited your repy in this regard your highly appreciated. 

Thanking you,

 

Replies (1)

You have not mentioned if your home is let out or self occupied.

Section 24b for Interest on borrowed capital allowed as deduction max amount being Rs.1,50,000(if self-occupied)

 

Section 24a is for allowance on repairs, maintenance etc - 30% standard deduction on Annual value. Since the annual value is nil for self occupied, such expenses cannot be allowed as deduction. (If your property is let out, 30% deduction is allowed irrespective of the amount incurred)

 

Section 80EE can also be claimed subject to maximum of Rs 1,00,000
There are some conditions for claiming the same :-
. Loan should be sanctioned between 01.04.13 to 31.03.14
. Loan taken by Individual for the purpose of buy a house should not be more than 25 lakh 
. On the date of sanction of loan individual does not have any own residential house property
. Value of the house should not more than 40 lakh.

If you satisfy all the conditions stated above, then 80EE can be claimed.

 

Thank you.


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