Menu
Rebate of housing loan Interest for extension of house under section 24 b
I have availed a housing loan for construction of ground floor in year 2000. Now I have taken an additional loan for extension of the above property ( construction of 1st floor) Purpose of loan given by Bank is extension of house. In this case whether the interest paid on loan for extension of house will be counted in the prescribed ceiling of Rs2 lakh p.a or Rs 30000/ p.a under section 24. Extension is nothing but in actual it is a construction
Replies (4)
it depends upon the discretion of the AO to allow 30000 or 200000.
in this case, specification is reqd whether new floor is letout or self occupied. .
As per sec 24(a), 30000 or 2 lac (after full filing 3 conditions) available for self occupied and in case of let out there is no limit.
for let out also the maximum limit is 2 lakhs only
24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:—
[a] a sum equal to thirty per cent of the annual value;
23[b] where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:
Provided that in respect of property referred to in sub-section [2] of section 23, the amount of deduction shall not exceed thirty thousand rupees :
Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within 24[five] years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed two lakh rupees.
24. Income chargeable under the head "Income from house property" shall be computed after making the following deductions, namely:—
[a] a sum equal to thirty per cent of the annual value;
23[b] where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:
Provided that in respect of property referred to in sub-section [2] of section 23, the amount of deduction shall not exceed thirty thousand rupees :
Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within 24[five] years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed two lakh rupees.
Recent Threads
- E way bill expired penalty
- Best SME Focused AIF Funds in India for High Growt
- How does employee management software help in stat
- Clarification Required – Section 18 of Wage
- How to split freelance project income with a frien
- 194a for A y 2024-25
- Compensation & Benefits
- SAC code and GST rate transport services for anima
- Section 44AB is Gone — How Different is Tax
- Capital Gains from Cancelled Residential Project
Related Threads
CAclubindia
