I am having a housing loan which was disbursed from March 2010 to May 2014. I got completion certificate on May 2014. Now my office says that it will allow deduction of interest paid housing loan only upto Rs.30000/- and not Rs.1,50,000/- as per sec. 24 of I T Act.
Is it right. My take is the loan is disbursed for a period spanning 3 years and the time limit of 3 years specified by the GoI can be reckoned from the May 2014 and not March 2010.
Can somebody help. Am I right????????????
amt. of deduction depends upon nature of loan. if loan was taken for repairs then max. of 30000 is allowed under sec 24b, but where loan is taken for construction of self occupied property then deduction of max. 150000 is allowed. and when loan is taken for construction of let out property then these limits do not apply.
however intt prior to completion is allowed in five equal instalments with or without the applicability of limit as the case may be.
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