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Interest on housing loan deduction
HIM
NOW a days its practice that while taking homeloan for buying a house a certain portion in additoin to homeloan is taken for frunshing of house. Can the interest portion on loan which is taen for furnishing calimed as deduction under (150000 )limit available for intrest on housing loan under income from house property
The bank has furnished seperate certifcates for interest paid on housing loan and loan for furnishing
Reagrds
Vikas sharma
Replies (7)
Loan certificate that such interest is payable in respect of the amount advance for acquisition or construction of the house maximum ceiling is Rs 150000/-
If capital is borrowed for any other purpose ie reconstruction , repair , renewals of a house the maximum limit is 30000/-
deduction of rs.150000 is available only for construction o house property, same cannot be claimed for furnishing, so u may not claim that interest portion.
You can claim Interest taken for construction of house and not for furnishing of house. Maximum amount eligible is Rs. 1.50 lacs.
As per content of section 24 of I.TAX ACT maximum deduction available up to Rs.1,50,000 againt payment of interest on loan for purchasing/constructing of new house.
such a deduction is availble for interest on loan for purchasing/constructing and not for furnishing of house.
furnishing is different from construction
so interest on loan for furnishing would not be available for deduction u/s 24 of I TAX ACT
it is rightly said intrest on loan for furnishing the house can not claim but what is in case of reconstruction of house ?
Sure, interest on furnishing can be allowed only if bank issues the certificates without bifurcating the interest portion into house loan and other loan.
CAN THE INTEREST ON HP LOAN BE CLAIMED AS DEDUCTION ON RECEIPT BASIS?
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