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Rebate of housing loan Interest for extension of house under section 24 b

RAKESH SETHI (HGA) (26 Points)

18 November 2017

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

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4 Replies

rama krishnan (12234 Points)
Replied 18 November 2017

it depends upon the discretion of the AO to allow 30000 or 200000.

Narayana Reddy Svv (29 Points)
Replied 18 November 2017

in this case, specification is reqd whether new floor is letout or self occupied. .

Sankalp Jain (39 Points)
Replied 19 November 2017

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.

rama krishnan (12234 Points)
Replied 19 November 2017

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.