in case of self occupied property whether interest on borrowedcapital is deductible on accrual basis or payment basis u/s 24. If on accrual basis what about an NPA A/c
whether deduction u/s 80 C for repayment of housing loan is allowable on payment basis or accrual basis
Dear SOWMYA,
DEDUCTION OF INTEREST U/S 24 IS AVAILABLE ON ACCRUAL BASIS EVEN IN CASE OF SELF OCCUPIED PROPERTY.
Further, Deduction of principal u/s 80 C is available on PAYMENT BASIS.
Hello AAmir Sir...
Would u plz tel me....whether ther's any specification about the institution from which we have borrowed capital for claiming deduction u/s 24??
Dear Sowmya,
Interest on borrowed capital is allowed on ACCRUAL Basis, no matter self occupied / let out....
Regarding deduction of principal (not pre construction) u/s 80C - payment basis.....
Dear Neha Babbar,
Can't understand your query??? please clarify it...
Dear Neha,
For claiming deduction of Interest u/s 24, Loan can be borrowed from any1 i:e even from a friend or a relative.
But it is advisable to borrow it from Banks or Financial Institutions since in that case repayment of principal will be eligible for deduction u/s 80 C.
Actually Sir...
I wanna know if I had borrowed capital for construction of house property from one of my friends or relatives...then can I claim deduction U/S 24 for Interest ??
Ok thanku Amir...
Nw its clear to me...
Dear Neha,
As i mentioned u can claim interest u/s 24 even on capital borrowed from friend or a relative.
Dear Neha
Any amount borrowed for the purpose of purchase, construction,repair,renovation or reconstruction of house property is deductible on accrual basis(i.e. even if interest is due for payment but not actually paid, deduction can be claimed).
agree with Mr.Amir - Advisable to borrow from banks or other financial institutions....
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