How much deduction u/s 80c will be available for the loan taken for repairing/renovation of house

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IF LOAN TAKEN FOR HOUSE REPAIRING /RENOVATION. IS PRINCIPAL AMOUNT REPAYMENT ELIGIBLE FOR DEDUCTIN U/S80C AND HOW MUCH AMOUNT OF INTEREST REPAYMENTIS ELIGIBLE FOR DEDUCTION UNDER HOUSE PROPERTY INCOME.

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Yes, if loan is taken for repair / renovation repayment of interest and principal amount can be claimed as deduction u/s24(b) and 80C, respectively.

Under 80C principal amount repaid during financial year will be allowed as deduction upto Rs.1,50,000 i.e eligible deduction under said section.

Amount of interest paid for the financial year shall be eligible for deduction upto Rs.2,00,000 if house property is Self Occupied Property and no limit on interest deduction if house property is Let out Property.

For self-occupied house, if you have taken a home loan for renovation, you can claim deduction on the interest component. The deduction is capped at Rs. 30,000 a year. For Rented full interest capped at 200000/- (Just the interest)

Dear Udgam Koomar,

Limits on amount of deduction for interest u/s 24(b) has been changed.

Kindly update self.

SIR WHAT ABOUT PRINCIPAL COMPONENT. CAN I GET DEDUCTION FOR PRINCIPAL AMOUNT REPAID.

First of all its Miss.Ruchika Somani.

Secondly Yes, u will get deduction of principal component.

Kindly read my prior reply.

DEAR  UDGAM KOOMAR, PLESE REPLY MY QUERY ABOUT PRINCIPAL REPAYMENT DEDUCTION.

I agree with Mr. udgam and differ with Ms. ruchika. if the borrowed capital is for the purpose of renovation or reconstruction, and the property is in the nature of self occupied, only 30,000/- can be claimed under section 24(b) (pls refer section 24(b) r.w.s 23(2)). if the property is of let out, then there's no limit for claiming interest.
Mr. jayant, if the loan obtained by you is in the nature of home/ housing loan, yes you can claim principal repayment subject to a maximum of 1.5 lacs
30000 limit was till 2013. now its 200,000.
attn : could you please provide respective provisions of the section Ms.ruchika
https://www.incometaxindia.gov.in/pages/acts/income-tax-act.aspx Kindly refer
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 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 28[five] years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed two lakh rupees.

attn Ms. ruchika, here the second proviso speaks about construction and acquisition and not renovation or repairs

I agreed to Ms. Ruchika Somani.,

 

As per Sec 24(b) upto Rs. 200,000 interest can be claimed for Self Occupied HP... No more limit for Let Out HP...

Exactly my point.

Read related case laws Mr. Rama.

Mr. raja, 200000 limit is for purchased and acquired house properties only and not for loans borrowed for renovations and repairs. pls both of you go through the sections 24(b) and 23(2) thoroughly and educate me also if any of my statement is wtong


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