Exemption u/s 24 for Home Loan Intrest

 

Dear Sir

 Please advice whether I should allow deduction under Sec 24 towards intrest on Home Loan if the assesee has taken a Home Loan & has started paying his EMI but has not got possession of house in curent financial year. The assessee is currently residing in a rented house & claiming HRA also.

 For Principle amount he is claiming deduction u/s 80 C.

Replies (1)

Hi..

If the employee have not received physical possession, he can't claim interest u/s 24. he can claim such interest in 5 annual installments after getting physical possession. However he can claim principal re-payment u/s 80C.

Regards

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