Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

Interest on residential property

rkg (owner) (63 Points)

04 March 2014

Mr. A wants to purchase a residential property by taking a loan on emi basis for 15 years for which he has to pay approx. rs 50 lac as interest. how can he get rebate of the said interest as tax planning:

Reply
Follow
Share

6 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 04 March 2014

He may avail deduction u/s 24 upto Rs. 150,000/- pa for self-occupied.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

rkg (owner) (63 Points)
Replied 01 April 2014

sir, while thanking you for reply, i want to know whether there is any way to allow rs. 50 lac interest on residential propert loan in income tax returns as tax planning.as the amount is much high in comparision of 1.5 lac as suggested by you.

Mihir (Wealth Manager) (5293 Points)
Replied 01 April 2014

Is Rs. 50 lacs interest is payable per year?

rkg (owner) (63 Points)
Replied 03 April 2014

yes, it is payable rs. 50 lac per year (property loan rs. 5 crore @ 10% p.a.)

Mihir (Wealth Manager) (5293 Points)
Replied 04 April 2014

If the property is self-occupied, the deduction one can claim cannot exceed Rs. 1.5 lacs. However, if the property is let out, then deduction toward interest shall be the interest actually paid.