Interest on borrowed capital

I had taken a loan from ICICI on 15th Nov 2004. The builder handed over the flat for occupation on 10th Nov 2007. I received the OC from the muncipality only by Dec 2008(after 1 year).

As per income tax rules as the period of occupation from loan sanction date is more than 4 years I am not eligible for the complete 1,50,000/- as interest on borrowed capital for self occupied property. And the eligbility is 30,000/- . 

My question:

What date should I consider as occupdation date while declaring(date of acquisition/contruction as per builder's leeter or OC date received from Muncipality)? Since the OC date from munciplaity is only after 1 year am I eligible for the complete 150,000 rebate on the interest. KIndly advice.....

Replies (5)

we take into account the date on which construction is completed...so as per my knowldege u can avail the exemption u/s 24 b upto 1500000.


regards,

Sunshine

its 150000...

INTEREST FOR LET OUT PROPERTY IS WHATEVER INTEREST IS PAID BUT FOR SELF OCCUPIED PROPERTY IT IS MAXIMUM OF RS 150000/-

Ownership rights have been transferred within three years i.e. acquisition is complete within three years from the end of Financial year in which the amount has been borrowed, date of receipt of OC from local authority is not relevant here. You will be able to claim deduction for the maximum limit of Rs. 150000.

Thanks for every one's response. My doubts are cleared

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