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:
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Interest on residential property
Replies (6)
He may avail deduction u/s 24 upto Rs. 150,000/- pa for self-occupied.
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.
Is Rs. 50 lacs interest is payable per year?
yes, it is payable rs. 50 lac per year (property loan rs. 5 crore @ 10% p.a.)
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.
Mihir is right
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