A constructed a house by obtaining loan from employer. After a few years, extended the house by obtaining addl. loan. The employer was allowing deduction as per I-T rules. But suddenly the employer says only the initial loan is eligible for deduction (principle and interest as admissible). The loan for extension is not admissible. Please advise.
Deduction of interest for all loans taken together cannot exceed Rs 150000.& if loan is taken for repairs renewals then the limit is 30,000.
In your case if it is extension of house my opinion would be to treat as Home loan for construction & not repairs and take the benefit of Rs 150,000.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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