Interest Deduction

Yes. Interest is allowed on due basis. i.e paid or accrued both are allowed

Yes, deduction for interest on housing loan u/s 24b allowed under accrual basis even if not paid. The payment condition is for principal repayment of housing loan which is allowed only on payment basis u/s 80C.

Regards,

Manoj

Thanks..wat about business loan or personal loan

U can't claim interest on business or personal loan in ur ITR. In case, if u r having any business income u can claim interest on business loan only if it is paid. Accrual like home loan is not allowed. Personal loan can't be claimed anywhere. But sometimes people will claim personal loan interest also by saying that they used it for business. It's debatable.

Crux is unlike Interest on housing loan, interest on other loans can be claimed only if they are paid. There is no accrual or due concept for them

In case of housing loan, interest accrued due but not paid is allowable deduction.