Mr. X has purchase a new house and taken loan on new property from bank Rs.10,00,000 and by keeping Extra Work agreement taken loan of Rs. 5,00,000.. Total Loan Amount Rs.15,00,000.Year end Interest is 2,00,000. whether i can claim whole interest as housing loan interest.. or the extrawork would be consider as repair,renovation,Reconsrtution limit to 30,000 interest..
pls reply proper answer
What exactly is extra work? If it is in connection with making the new house habitable then you may claim deduction in respect of it too.
You can clain whole on Rs. 10,00,000 as interest
and only 30000 on loan of RS. 500000 for extra work.
but if Loan of RS. 500000 taken for inital construction of house than u can claim whole 200000 as interest.
CA Suraj Garg & Associates
New Delhi
CA Final
View Details
CCI
Pro
CAclubindia
