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Interest on Self occupied Property

Yeshwanth (Chartered Accountant) (145 Points)

01 March 2010

An assessee can claim upto 1.5 lac if the loan is taken on or after 01.04.1999 for purchase / construction of a res. house property which should have been purchased / acquired within three years from the end of the previous year in which the loan has been taken..

If a person takes loan on 01.03.2004 and a second loan on 01.04.09, now the 3 year period should be reckoned from which date, i.e from 31.03.04 or from 31.03.05?

And if the answer for the above is 31.03.04, assume the property has been purchased on 01.08.07. The interest on 1st loan is 40000 and second loan is 70000. Can the assessee claim full 110000 or only 30000 for AY 10-11?...

Help me friends.....

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8 Replies

Chintan Shah (-) (534 Points)
Replied 01 March 2010

Dear friend yeswanth,

The date for the purpose of deduction of interest for this purpose must be the date on which the money was first borrowed. This means that the construction in your case needed to be completed before 31.3.2007 to claim interest of upto Rs. 150000. Since the same has not happened interst claim should not exceed Rs. 30000.

Regards,

Chintan

1 Like

Amir (Learner) (4016 Points)
Replied 01 March 2010

Dear Yashwant,

Agree with Friend Chintan.......

C.Balaji (Learner) (1867 Points)
Replied 01 March 2010

Agree wtih CHINTANSHAH.....

The Loan was taken on 1.3.2004 therefore the date begins from 31.3.2004.............

31.3.2005 - 31.3.2006 - 31.3.2007.........

House purchase on 1.8.2007......beyond the period....

Therefore the deduction is limited to only Rs.30000/-......- self occupied.....

But waiting for other views....

Yeshwanth (Chartered Accountant) (145 Points)
Replied 02 March 2010

Thanks friends.....

sunil (excise incharge) (56 Points)
Replied 03 March 2010

If husband and wife are working and both are comming under the category of TAX PAYERS under Income tax act. They had taken a housing loan which is self occupied , they are paying the premium jointly,

Now my question is " Whether they both can avail the exemptions "

Kindly suggest

Chintan Shah (-) (534 Points)
Replied 03 March 2010

Dear friend Sunil,

If the house is owned in joint name and the loan is also in joint name than both husband and wife can claim deductions u/s 24(b) to the extent of Rs. 150000 if the house is self occupied subject to fulfilment of provisions of proviso to section24(b). The computation of Income from house property will be done seperatly as if there are two house property each one part owned seperatly by husband and wife.

Regards

Chintan

C.Balaji (Learner) (1867 Points)
Replied 04 March 2010

Agree with Mr. Chintan Shah.........

House Jointly owned and Loan taken in Joint name - Husband and Wife can claim Interest deduction in agreed Proportion........both can show HP loss (Self Occupied)....

Ayushraj (Professional) (125 Points)
Replied 12 March 2010

House owned jointly, loan also taken jointly. But if re-payment is done by first holder only, what is the situation.

Only the First holder can claim or both can claim?

What is the creiteria to claim deduction u/s 24 & 80C under the Act.

The person who pays the Loan can only claim or as the loan & house is in joint names both should claim under the Act without taking into consideration as to who repays the same?

What if in one year only first holder repays and in the second year the second holder also contributes some x amount.