the assessee ia already having a self occupied house property and planning to buy another one (in another city for self occupation) with borrowed fund.query is whether the interest paid on loan for acquiring the second property can be claimed u/s 24 of the income tax act ?
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interest u/s 24 of the income tax act
Replies (18)
Yes, it is allowed
Yes it can be allowed as deduction u/s 24
It cannot be allowed under section 24.
It is allowed under section 24
Where the person has occupied more than one house for residential purpose , only one house is treated as self-occupied and other house will be treated as deemed letout..........(according to assesse choice). as per section u/s 24(b), interest on borrowed capital deductible.......
I agree with Mr. Nageswara Rao. When A assesee has more then 1 self occupied house, assesee can claim self occupied house only for 1 house at his option
In Any case interest will be allowed
yes, interest on loan borrowed for the purpose of purchase or construct a house is allowable as deduction U/S sec 24 of income tax there is no limit for no of houses or no of loans but maximum interest deduction allowable is rs.150000/-
Section 23 (2) Where the property consists of a house or part of a house which
(a) is in the occupation of the owner for the purposes of his own residence; or
(b) cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him,
the annual value of such house or part of the house shall be taken to be nil.
Thus the value of one house should be taken as nil at the option of the assessee & other can be termed as the Let out
Further the limit of 150000/- for the purpose of Interest deduction is applicable to the Self occupied house property & not to the one which is let out.
Thanks,
sunil
yes it is allowed as per the choice of the assessee one house is treated as deemed let out
yeah intt is allowed upto a max. of Rs.150000 for purchase or construction of house...
Moreover, deduction on intt is allowed on ACCRUAL basis, i.e. even if not actually paid u claim deduction...u/s 24.
| Originally posted by :Madhu Soodan Tapuriah | ||
| " | the assessee ia already having a self occupied house property and planning to buy another one (in another city for self occupation) with borrowed fund.query is whether the interest paid on loan for acquiring the second property can be claimed u/s 24 of the income tax act ? yes u can avail it u/s 24 | " |
U\s 24b interst is allowed for deduction fron n.a.v
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