Interest on housing loan

Housing Loan Interest:

In case of Housing Loan to  Bank employees generally two accounts are maintained

  • One for Principal
  • One for Accrued Interest

First principal is adjusted from the repayment and after wards, interest is reduced.

 

Now, what would be the treatment in Income Tax return:

 

  • Should we take the deduction of total repayment amount as principal repayment   in 80 C ( Up to Rs. 1 Lac ) and the accrued interest too U/s 24 B ( Negative income up to Rs. 1,50,000).
  • Some other treatment.

Please Clarify.

 CA Alok Goel

M - 9837080659

Replies (2)
Ddeduction Only against principal repayment, as first deduction adjusted against principal amount account by bank.
since principals have been repaid from emi then only 80c can be claimed and when interest is repaid then 24b to be claimed.

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