23 Dec
Deduction of interest and principal payments - House property under the Income Tax Act
INCOME
FROM HOUSE PROPERTY INCOME TAX ACT
Deduction of interest and principal payments - House property under the Income Tax Act
Section 24(b):-
The maximum interest limit on a loan taken for a house property is 2,00,000/- provided all the following conditions are fulfilled!- →House property is self-occupied or vacant;
→ Loans should be taken for purchase and construction; →Loan should be taken on or after 01.04.1999.
→ The purchase or construction must be completed within 5 years from the end of the financial year in which the loan was taken. Deduction if the above conditions are not met
24(b) shall be limited to Rs.30,000/- if any
Interest on pre-construction loan taken on house property will be deducted in 5 equal instalments from which the construction is completed. in the year
Section 80EE- Additional deduction of interest on the loan for house property:-
→ Loan must be sanctioned between 01.04.2016 to 31.03.2017.
→ Loan taken must be 35,00,000/- or less and property value must be Rs.50,00,000/- or less.
→ Deduction upto 50,000 in excess of deduction v/s 24(b).
→ Should be for first house property. Article 80 Deduction on EEA- Int. On affordable housing:-
→Int. on loans taken is limited to Rs.1,50,000/- and deduction u/s 24(b).
→ The stamp duty value of the house should be 45 lakhs or less;
→ Taxpayer cannot claim deduction under 80 EEA if he/she has taken deduction u/s
80 EE.
The deduction is for the first home property
The loan must be sanctioned between 01.04.2019 and 31.03.2022.
Principal repayment of loan on house property:- Deduction is covered as per the limit
specified under 80c.
Regards
Santosh Patil
Founder
Alliance Tax Experts
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