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Interest on housing loan

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prachi

Sr. Consultant - Accounts

28 Points Posted on 20 August 2013

Hi,

On adding Interest on Housing Loan and 1/5 th of PEMI component, if the amount is greater than Rs. 150000/- how much deduction can be considered? e.g. if Interest on housing loan is Rs. 125000/- plus 1/5th PEMI interest Rs. 35000/- totaling to Rs. 160000/-, how much deduction will be allowed, Rs. 150000/- or Rs. 160000/-. Please elaborate.

Replies (2)

shikhar

LEARNER

1394 Points Posted on 20 August 2013

Helloo Friend...

As per section 24, Interest on house can be claimed in the financial year in which u acquired the property OR loan has been fully paid ........ATLEAST ONE CONDITION SHOULD BE FULFILLED

For example if u acquired a property on 1st may 2013, then u can clain all the interent (till march 2013) in 5 equal instalments.

if your total interest is 50,000 (till march 2013) then u can clam 50000/5= 10000+ interest of current year (from 1st april 2013 to 31st march 2014) in fy 2013-14

in case of self occupied property u can clain deduction Upto Rs,150000, if u borrowed on or after 1st april 1999 and construction is completed in 3 years from the end of fy in which the capital is borrowed.

And in case of let out their is no limit for interest deduction, u can claim above Rs 150000

THANK YOU

SHIKHAR