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House repair income tax deduction

21 January 2021

housing loan Interest and principal amount is available when income tax making time thats fine ....but .. after some year loan taken for house renovation in this case house renovation loan interest and pricipal is also taken as a deduction when income tax filing time ...??

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5 Replies

Dev Prajapati (215 Points)
Replied 21 January 2021

Deduction of interest is allowed u/s 24
but Principal component is not available u/s 80c

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Kapadia Pravin (17249 Points)
Replied 22 January 2021

No interest deduction is allowed for house renovation under 80C and section 24

anil jain (Partner) (1067 Points)
Replied 22 January 2021

section 24 is reproduced below.

Interest is allowed for repair

section 24 is reproduced below.
Interest is allowed for repair
Deductions from income from house property.
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;
(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 58[or, as the case may be, the aggregate of 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 five years from the end of the financial year in which capital was borrowed, the amount of deduction 58[or, as the case may be, the aggregate of the amounts of deduction] under this clause shall not exceed two lakh rupees.
Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:
Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.
Explanation.—For the purposes of this proviso, the expression "new loan" means the whole or any part of a loan taken by the assessee subsequent to the capital borrowed, for the purpose of repayment of such capital:
59[Provided also that the aggregate of the amounts of deduction under the first and second provisos shall not exceed two lakh rupees.]