interest on loan for house property u/s 24

TDS 1661 views 2 replies

abid

accountant

169 Points Joined August 2007

regards to all of u

can u tell me if an employee take a home loan for construction and paid EMI then all the part of interest whether it is 70,000 but not exceed the taxable income, is allowed as deduction while computing the taxable income.

example

total salary is 295000

interest on home loan is 70,000 principle amount is 25,000

investment u/s 80-C is 57,000

mediclaim policy is 10,000(yearly instalment 2000)

what is the taxable income

Thanks and Regards

Abid Hussain

Replies (2)

Sunny

Articled Trainee

44 Points Joined October 2007

Dear Abid, U/S 80C allowable deduction is 57,000+25,000=82,000 and the mediclaim premium of Rs.2000 is to be allowed U/S 80D.The interst on home loan is to be deducted from house property under proviso to sec. 24b of the I.T.Act,1961

GARGS

74 Points Joined June 2007

if the house is not constructed yet then interest is not to be allowed now rather it is to be deducted as pre-construction interest, in the year of completion or year of repayment, whichever is earlier. however deductions u/s 80C is same as told you above. You can also mail me at: taxsolution @ againstthelaw.co.in