Dear Expert,
I have two loans from TATA Capital, one of the Home Loan (Diburse in 2010) and another is a Top up of existing Home Loan (Disburse in 2013).
So please confirm whether the payment of the Principal and Its intrest is taxfree or not on both loans?
Ifyes, then please confirm me the amount of exemption for the FY 2012-13.
Repayment of Housing Loan Principle is eligible for deduction u/s 80C but in case of one housing loan only. But if top-up loan is obtained on same loan account, you shall be eligible for the deduction even on increased principle repayment but subject to max. deduction Rs. 1 lakh.
For interest deduction u/s 24 the limit is applicable depending upon whether House is self occupied or let out. If House is self occupied deduction is limited to Rs. 1,50,000/-. However if house is actually let out or treated as deemed let-out for income tax purpose, then there is no limit for deduction.
i have some doubt that deduction is available or not becasue original housing loan is for purchase/construction of house but top up loan is for something else
CAclubindia
