Home > Income Tax > House Property > Deduction of Interest on Housing Loan – Section 24b

Deduction of Interest on Housing Loan – Section 24b

Applicable for financial year 2016-17 and 2017-18

Section 24 of the income tax act provides deduction in respect of home loan interest.

Important points

1) Interest on housing loan is allowable as deduction on accrual basis not on paid basis (even if account books are kept on cash basis) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property. Deduction can be claimed for two or more housing loans.

2)Interest includes service fees, brokerage, commission, prepayment charges etc.

3)Interest/penalty on unpaid interest shall not be allowed as deduction.

4)Deduction shall be allowed irrespective of the nature of loan whether it is housing loan or personal loan from any person/institution.

5) If a person instead of raising a loan from a third party pays sale price to the seller in instalments along with interest than such interest is also allowable.

6) Interest on borrowed money which is payable outside India shall not be allowed as deduction under section 24(b), unless the tax on the same has been paid or deducted at source and in respect of which there is no person in India, who may be treated as an agent of the recipient for such purpose.

7) For claiming deduction under this section, assessee must be the owner or deemed owner of the house property and loan shall be in the assessee name.

Maximum Limit of deduction under section 24b

These limits of deduction is applicable assessee wise and not property wise. Therefore if an assessee owns two or more house property then the total deduction for that assessee remain same.

1) In Let Out Property/Deemed to be Let Out – No maximum limit

2) Self Occupied House (SOP) – Rs. 2,00,000. (1,50,000 for A.y 2014-15 and before)

In the following cases the above limit of Rs 2,00,000 for SOP shall be reduced to Rs. 30,000

– Loan borrowed before 01-04-1999 for any purpose related to house property.
– Loan borrowed after 01-04-1999 for any purpose other than construction or acquisition.
– If construction/acquisition is not completed within 5 years from the end of the financial year (3 years till financial year 2015-16) in which capital was borrowed. For example, a loan is obtained for construction/acquisition on 28 Oct 2011 then the deduction limit should reduced to Rs 30,000 if the construction/acquisition completes after 31 March 2017.

Also Read – Extra Deduction of Rs. 50,000 on Home Loan Interest under Section 80EE


Interest for pre construction/acquisition period

Interest for pre construction/acquisition period is allowable in 5 equal instalment beginning from the year of completion of house property. This deduction is not allowable if the loan is utilized for repairs, renewal or reconstruction.

Pre Construction/Acquisition period starts from the date of borrowing and ends on the last day of preceding Financial Year in which the construction is completed. For example, if house property is completed on 21st March 2012 then the deduction is allowed from Financial Year 2011-2012 to 2015-16.

Example
Loan Taken on 01-05-2006 of Rs. 5,00,000

Construction End on 07-09-2012.

Pre Construction/Acquisition Period = 01-05-2006 to 31-03-2012

Pre Construction/Acquisition Interest = Rs 3,55,000 ( Rs 5,00,000*71 Months*1%)

Pre Construction/Acquisition Interest Deduction for Financial Year 2012-13 to 2016-17 assuming let out property or deemed to be let out = Rs 71,000 per year ( 3,55,000/5 )

Pre Construction/Acquisition Interest Deduction for Financial Year 2012-13 to 2016-17 assuming SOP = Rs 71,000 per year ( 355000/5 ) (as the construction is completed within 5 years from the end of the financial year in which capital was borrowed)

Interest from 01-04-2012 to 31-03-2013 shall be allowed as deduction in 2012-13 as current year’s interest. Interest from 01-04-2012 to 07-09-2012 shall not be considered as Pre Acquisition/Construction Period.

Note: – If a property is partly SOP and partly let out then also the limit of Rs 2,00,000/30,000 shall be available for SOP portion and there is no limit of deduction for let out portion even if the construction is completed after 3 years.

Deduction in case of Co-borrower

If the home loan is taken on joint names then the deduction is allowed to each co-borrower in proportion to his share in the loan. For taking such deduction it is necessary that such co-borrower must also be co-owner of that property. If the assessee is a co-owner but is repaying the full loan himself, then he can claim the deduction of full interest paid by him.
The limit of deduction in case of Self occupied property applies individually to each co-borrower . In other words, each co-borrower can claim deduction upto Rs. 2 lakh/Rs. 30,000. No limit is  applicable to let out property.

Difference between Section 24b and Section 80C

Interest on home loan is allowed under section 24b while principal on home loan is allowed under section 80C. A comparison between section 24 and 80C is given here under:-

 Particulars Section 24b Section 80C
Tax Deduction allowed only for  Interest Principal
Basis of Tax Deduction Accrual Basis Cash Basis
Amount of Deduction Self occupied property : Rs. 2,00,000 (From assessment year 2015-16)
Other than Self occupied property : No limit
Rs. 1,50,000  (From assessment year 2015-16)
Purpose of loan  Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a Residential House Property.  Purchase / Construction of a new House Property
 Eligibility for claiming Tax deduction  Purchase/ Construction should be completed within 3 years NIL
Restriction on Sale of Property  NIL Tax Deduction claimed would be reversed if Property sold within 5 years from the end of financial year in which such property is acquired by him.
Deduction during construction period Interest paid during the construction/acquisition period shall be allowed in 5 equal installment from the last day of preceding Financial Year in which the construction is completed No deduction is available for the principal repayment during the construction/acquisition period.




Interest Deduction with HRA

HRA  under section 10(13A) and interest deduction can be availed simultaneously even if house property is in same city in which you resides on rented property.

Form 12BB is to be filed with employer if you want your employer to take deduction under this section into consideration and thus deduct lower TDS

Case Laws

Prepayment charges are also allowed as deduction as interest under section 24b. (M/s.Windermere Properties Pvt.Ltd. 2013) Read full case law at indiankanoon.com

Income Tax Department’s Guide

 

interest on housing loan

386 comments

  1. Sir, I have availed Housing Loan of Rs. 15 lakhs from LICHFL and bought a new built house in 2010. The interest comes to Rs.130000 for the financial year 2016-17.. In 2014, I had availed another loan of Rs.5 lakhs for improvement say Compound Walls, Staircase to open terrace in the top floor of the house etc. The interest on such additional loan comes to Rs.45,000 for the year 2016-17. My employer allows interest on first loan only i.e.Rs.1,30,000 and refuses to deduct Rs.45,000 on second loan taken for improvement or additional structures of the House. Is it correct?

    • Prateek Agarwal

      Interest on loan taken for improvement is allowed up to a maximum limit of Rs. 30,000. So you are allowed deduction of Rs. 30,000 only.

    • Sir, Further to my query on 07/07/2017, I am not convinced about your reply. What about the interest of Rs.130000 on loan taken to purchase the House. Will it be not allowed, just because I availed additional loan for improvement. You only said, Improvement means additional construction. Then interest of Rs.45,000 should also be allowed. Since overall interest cap is Rs.2,00,000/- the whole interest I paid i.e. 1,75,000/- should be allowed. What is your opinion?

      • Rohit Pithisaria

        You are eligible for a total deduction of ₹.160000, ₹.130000 on interest on loan taken for purchasing the house and ₹.30000 for loan taken for improvement of property.

  2. Vkumar 07/07/2017 at 01:55 PM
    Hello,

    I purchased a House in the year 2010 and taken House Loan for Rs.10,00,000/-. Now I am paying around Rs.80,000/- towards Interest and Rs.40,000/- towards Principle. In Jan, 2016 I have purchased a second House (Rs 50,00,000) and taken a loan of Rs. 38,00,000/- and Interest have been paid around 1,40,000/- for the year 2016-17. First House is self occupied and second house is under construction and the construction should be completed on or before September 2019. My question is whether can I claim total interest 80,000+1,40,000=2,20,000 in which Section because of second house is under construction.

    • Prateek Agarwal

      The second house is under construction now .The pre construction interest presently paying can be allowed as deduction in 5 equal installments to the assessee only after completion of the construction.
      Hence, RS. 80,000 can only be allowed as deduction for interest on home loan under section 24(b) for F.y 2016-17.

  3. Sir, I am a govt. staff. I bought 2 fully constructed houses on bank loan. 1 house in the year 2014 and 2nd house in 2016. For 1st house I am claiming as “Self Occupied”. For the 2nd house, I wish to claim “deduction of interest on housing loan under Section 24B”.

    My question is, which IT return form should I use to fill my tax return for the FY 2017-18?

  4. hi
    if, i had one house of my name,and i had baught another property in native place by housing loan from SBI …im goverment servent so can i took deduction of principal & intrest rebeat in my income tax?????

    • Rohit Pithisaria

      Yes, you can claim deduction for interest and principal repayment for the new house as well.

  5. PANCHALI MUKHERJEE

    Hi,

    I stay with my husband in a rented apartment in Chennai and now recently bought my first home in Chennai itself, for which I am taking a loan of Rs.25 lakhs. I have booked it on May 2017 and EMI will start in August. I will be getting the possession of my home in August 2018. Although we will continue to stay in the rented apartment and rent out that property as it is in the outskirts of the city.
    Could you please let me know what all deductions I will be getting u/s 24(b) and 80EE and also 80C and HRA in FY 2017-18.

    • Rohit Pithisaria

      All the deduction u/s 24b, 80C, 80EE will be allowed once you receive possession of the house property.

      HRA can be claimed if you are actually paying rent for your residence.

  6. Hello sir
    I hv taken a loan for a flat of 21 lac in me and my wife name
    I m going to registered in the name of my wife,because jharkhand govt start 1 rs registered in the name of ladies,if i do so can i get benefits of sec 24 and 80c
    My wife is a housewife, an i m salaried employee of jharkhand govt,and i m paying all the emi against my salary
    Some of my tax adviser are saying i can take benefits of half of the portion of principle and interest, plz advice me

    • Rohit Pithisaria

      No, you will not get benefit as the property is registered in the name of your wife. Deduction u/s 24b is allowed only to the owner of the property.

  7. Dear Sir,

    I have a pre-emi annual interest of 15000/- (after dividing over 5 years) and annual interest component 195000/- for the same house.
    It is self occupied property. Can I combine these 2 interests and claim an exemption of Rs. 210000/- or should I restrict it to Rs. 200000/-, the upper limit ? Essentially, I would like to know whether the limit of Rs. 200000/- includes the pre-emi interest ? Regards.

  8. Sir,i live in govt allotted accomodation in delhi and have taken housing loan for a DDA flat ,which is so small,kept vacant can i get rebate under section 24 or interset part of hosing loan

  9. I took the home loan in Nov 2012 but paid full EMI till I got the possession in Aug 2016. The home and the home loan is in joint name of me and my mother with my mother being the first owner. The EMI is all paid by me. As per Section 24, I can claim 1/5th of pre-construction interest plus actual interest for FY 16-17 if the property is let-out. The property was let-out in Oct-2016. The income loss in interest as per above calculation is coming to Rs.631000. Can I claim this in income tax return filing for Assessment year 2017-18?

    • Rohit Pithisaria

      In case, co -owned property is let out, the total income/ loss from the property must be calculated and must be apportioned among the co- owners in their definite share.

  10. Hi,

    I have availed housing loan during 2013-14 and I got possession of my flat in June 2017. Am i eligible for rebate of 1/5th of the interest paid during period of construction or only Rs. 30000?

    • Rohit Pithisaria

      Can you please share the date of taking loan so I can suggest.

      • 18 September 2013.

        • Rohit Pithisaria

          The overall limit for deduction will be Rs 2,00,000 as the construction is completed within 5 years from the end of the financial year in which capital is borrowed.

          • My question is ..
            When it was earlier 03 years, the construction was supposed to complete by March 31, 2017.

            Since the effective date of implementation of 05 years rule is April 01, 2017, this april 01, 2017 is cut off date for completion of construction or date of loan borrowed?

            My case is peculiar one as the construction has not been completed within 03 years ( 2014-15, 2015-16 and 2016-17).

            Will I get rebate for sure?
            My interest would come out to around 2 lakh ( for 2017-18 and 1/5 of previous years).

          • Rohit Pithisaria

            Yes, I already understood your case and you were allowed a deduction of Rs 2,00,000 in case of SOP. Please find the relevant bare act below as per Income Tax Department website
            “Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed within [five] years from the end of the financial year in which capital was borrowed, the amount of deduction under this clause shall not exceed two lakh rupees.”

          • Thanks a lot for the reply.

            One more request.
            We have property in joint name and both are co-borrowers of housing loan.

            Can one of us claim full interest deduction, in case total interest for 2017-18 plus 1/5 of interest paid during construction period amounts to exact Rs. 2 lakh?

            Presently I have left my job but my husband is in highest tax slab.. He may benefit more.

            Thanks in advance.

          • Rohit Pithisaria

            Nope. It should be dividend in to 2 parts as you both are co-owner (assuming definite share) and both are paying home loan.

          • Though we are co-borrowers, around 95% in past four years has been made by my husband. We have bank records to reflect the same.

          • Rohit Pithisaria

            Interest is allowed on the basis of ownership in property. If the share of a co-owner is 50% then interest shall be allowed only for that loan which is used for making payment of that 50% of his personal share in house property.

          • Thanks a lot Rohit Ji.

            In this case, we shall seek only 50% of interest paid during the period of construction plus 50% of current year interest.

            Does the same logic apply to principal repayment as well.

          • Rohit Pithisaria

            Yes, same logic apply to pre-construction interest. Yes, same logic is applicable to principal repayment however no principal repayment deduction is allowed for pre-construction period.

  11. Naresh Raghani

    I am allowed HRA and i am paying Rent by cheque / Bank transfer to my wife who also files ITR. I have also entered in stamped agreement with her to pay rent at the agreed rate.
    The house for which rent is paid to my wife has been funded jointly by us from our resources. My wife has also taken a loan of 44 lacs
    ( nearly 75 % of the registry value to fund ) in her name for which I am co borrower. The house is registered in Her Name as first owner and Me as joint owner.
    The payment for Home loan is done by both of us. My wife pays her EMI component from her income and the rent that I pay to her. While i pay for the balance 50% EMI .
    Please advise
    1. Can I claim HRA benefit for the rent paid to my wife ( as in case of Bajrang prasad case )
    2. Can I also deduction of Interest for My component of 50 % EMI Paid as co borrower ( the TDS certificate shows my wife as Borrower & Myself as Co Borrower.

    Regards

    • Rohit Pithisaria

      You should not claim HRA as the overall nature is tax reduction. You can claim interest in your return only when you are having a definite ownership of property as well as having loan in your name. Also the interest should be paid from your bank account or if it is paid from your wife account then you should reimbursed her regularly for the EMI amount.

  12. If a loan is obtained in instalments, then, what would be the date of loan i.e. whether it would be first disbursal or the last disbursal in order to calculate the 5 year period within which construction needs to be completed.

    • Prateek Agarwal

      The act states that limit starts from the date on which capital is borrowed. If there are two loans than they have separate borrowing date. But if the loan is disbursed in instalments then first instalment is to be considered as date of borrowing.

      • Thanks. please also let me know that in case I convert my loan from fixed interest rate to floating interest rate by paying processing fee, then in that case can the conversion date of loan can be considered as borrowing date.

        • Prateek Agarwal

          No, specified provision is given in this regard. But considering the purpose of law such conversion should not be treated as taking a new loan.

  13. Dear Sir,
    I have taken Home Loan from HDFC ( with one Builder under 80% , 20% scheme in Kalyan ), i am residing at my own home [ in herited by parents in Mumbai western sububrbs ]] & fro my Kalyan Flat – i have taken Home loan 1st EMI started in month FEB 2016 as PPRE-EMI interest.

    i am till date paying PRE-EMI of Rs. 16,000/- and builder may take time to give possession by JULY 2017 or later.
    MY question is : Can i claim my PRE-EMI payment done in my Income tax filing ?

    pls reply urgently.
    Mr. SHAH
    Mumbai.

    • Prateek Agarwal

      You can claim interest from Financial year 2017-18 only. Interest up to 31st March 2017 will be allowed in 5 instalments as discusses in this article.

  14. sir
    i have purchased my first house in the name of my wife and i have taken a loan of 24 lakh from bank in the name of me and my wife. i have paid all initial amount from my salary and paying the installment also from my salary. my wife is house-wife. registry is in my wife’s name, not my name. I purchased the house in the name of my wife to empower the ladies. can i get income tax rebate on principal as well as on interest?

    • Prateek Agarwal

      The condition for getting the deduction is that the person should be the owner of the house and also he/she should pay the amount for which he is seeking exemption. You fulfills the second condition but not the first one. So no deduction is allowed to you.

  15. Deduction shall be allowed irrespective of the nature of loan whether it is housing loan or personal loan from any person/institution. please clarify this. i have taken a business loan by converting my housing loan from another bank. Can i take interest deduction u/s 24 b?

    • Prateek Agarwal

      Amount taken as personal loan can be said to be used for construction of house. However its not seem legitimate to use business loan funds for construction of house, therefore it is not allowed.

  16. Thanks a lot for valuable information

  17. Sir, Me and my wife stay in a rented accommodation in Bangalore and have also availed housing loan for a house in Bangalore in which my parents reside. Both these house are around 5 kms apart. Can I avail both the HRA and Interest benefit on housing loan.

    • Prateek Agarwal

      Yes, you can take benefits of both HRA and interest of home loan simultaneously.

  18. sir thnaks for reply pl. clarify for home extension loan form HDFC for extension to house to 1st & 2nd floor for own living. can i claim upto 30000/- or 2,00,000/- under 24(b)

    • Prateek Agarwal

      30,000 is limit when you are doing repair, renewal. Extension of house is considered similar to construction of a new house and thus limit will be rs. 2 lakhs.

  19. Sir I have taken a home loan for House extension for construction of 1st & 2nd floor upon already constructed ground floor where i was living. Now i occupied all floors. Pl. clarify that will it eligible for 2 lac interest rebate under 24(b).

    • Prateek Agarwal

      Deduction is allowed under section 24(b) for loan taken for extension of house. So you can take such rebate.

  20. I HAVE TAKEN A LOAN FROM BANK FOR CONSTRUCTION OF PROPERTY.CAN I CLAIM IT DEDUCTION ON INTEREST AMOUNT.
    REGARDS
    S.P.CHAUDHARY

    • Prateek Agarwal

      sure sir

      • S.P.CHAUDHARY

        But my Company is refusing saying in construction period you cannot claim deduction.They are informing only after possession of the flat i can claim deduction.Please advise

        • Prateek Agarwal

          Yes, your company is right. Interest is allowed only after completion of construction or taking possession. The interest which belongs to pre construction period is allowed in 5 equal instalments.

  21. Good Morning Sir, I have a query !!! I have a home home loan and house is registered in joint names with my wife. She is a home maker and i am talking all benefit of EMI & interest. Now we are expecting rent from the same house. Can wife alone take entire rent and other benefit by me?

    • Prateek Agarwal

      The benefit of interest on housing loan is available to person who has paid the loan. And the income of rent is taxable in hands of both owner.

  22. I am an employee can I claim 30000 deduction for repairs & maintainance.

    • Prateek Agarwal

      The deduction is for interest paid on loan taken for construction or repair/renewal of house. The repairs and maintenance expenses itself are not deductible.

  23. SWEETY RASTOGI

    I and my husband have taken joint loan in 2007 ,but he is paying 100% repayment.He is the coowner in SOP of mine . He wants me to take full tax benefit uner section 24 (b) .What are the forms to be filled ?

    • Prateek Agarwal

      As he is paying the instalment, only he is eligible to take deduction.

    • suppose some one wants bank interest on capital borrowed on purchase of House. he claims HRA benefit and interest. both are allowed in same city ? how rule position ?

      • Prateek Agarwal

        Deduction is allowed for HRA and for interest on home loan even if both the houses are in same city.

  24. I have taken loan for second house in 2014. However i did not claim deductionof tax in 2014. Can i claim the same in 2017 filing.

    • Prateek Agarwal

      No, if deduction is left for any year then such deduction CAN NOT be claimed in subsequent years.

  25. i purched ahouse which have total cast 1700000 &registration charg about 150000 ,repairing charge about 1500000 .for this i borrowed a home loan rRS 1350000 & apersonal loan RS 700000. can my interest ofpersonal loan be deducted under incomtax purpose.

    • Prateek Agarwal

      Deduction shall be allowed irrespective of the nature of loan whether it is housing loan or personal loan from any person/institution. But it should be used for purchasing or construction of house.

  26. K P Thankappen

    I have availed a housing loan for Rs.7,50,000/-.After three years of repayment I have availed a home equity for Rs.5,00,000/- .Can my interest of Home Equity(Home Plus) be deducted under income tax purpose?

  27. GURPREET SINGH

    We are having a home loan from HDFC taken in FY 2014-15.The EMI is debited from my wife account and she is borrower of the loan and i am the coborrower. In the provisional statement as issued by HDFC for section 24(b) and 80c tax emeption, we both have name listed their.My wife had been claiming the tax exemption from it for last 2 years.She also has got demat account wherein a loss of Rs 1 lacs has been booked for share trading. Can this year i can claim exemption from home loan since i am thinking of claiming loss for her share trading

    • Prateek Agarwal

      The condition for taking exemption is that the person should be owner of property, also co borrower of loan and also had paid the emi. In your case emi is debited from your wife’s account so you will not be eligible for such deduction.

  28. I have paid total interest on home loan as Rs 233000 in Year 2015-16. I availed a benefit over Rs 200000 in AY 2016-17. May i get benefit of remaining Rs 33000 In AY 2017-18. If yes then what is the procedure.

  29. HI,

    I have a house in my native where my brother is staying and he is claiming HRA 50k in year , I am paying loan interest around 3.5 lakh in financial year. can i claim 3 lakh as house loan interest?

    kindly Advice.

    • Prateek Agarwal

      In case of self occupied houses limit is rs. 2 lakhs. So to claim such deduction fully you have to show such house rented to your brother and take rent from him. Also the rent should be computated as minimum of the rent decided by municipality in your local area.
      And then such rent will be added to your income and you are allowed to take rs. 3.5 lakhs as deduction.

      • Hi,i want clarification on this case. Pl help if I hv understood properly.

        Mr A has brought property and pays interest of 4.5lac n principal of 1.5 lac and has let this property n earns 2lac rent. And pays 2Lax rent as he is staying in rented premise.

        Will he get HRA benefit, principal pay under Sec 80c, n interest of full amount. Also rent inc recieved will be added in his income. Pl help if my understanding is correct

  30. Suppose interest paid towards house loan is Rs. 50000/- for the financial year. Can both husband and wife claim Rs 50000/- each. Please note both are joint owner of the house and wife is a co-borrower of loan.

    • Prateek Agarwal

      No, double deduction is not allowed in any case. Also the person who has paid the interest only can claim the deduction.

  31. I have taken a joint loan and my spouse is co owner and co-borrower too. If I have paid rupees 50000 as principal and 1 Lakh as Interest in last financial year then can I do the following?

    Claim full 1Lakh Interest benefit under section 24 for myself from my employer?
    &
    Claim full 54000 benefit under section 80C for wife from her employer?

    • Prateek Agarwal

      No, the person who has paid the sum is only eligible for claiming deduction. Since you had paid the principal amount, you can take deduction under section 80c not your wife.

      • Thanks for the reply Prateek. What if we had paid a lump sum(in last FY) amount as prepayment to reduce the outstanding loan from joint account. Can I in that case claim it as exemption under my wife tax calculation under 80C section as that was the principal amount?

        • Prateek Agarwal

          Yes, in such case you can claim the deduction from your wife’s income .

  32. Hello Sir,

    I have a flat in Bhopal and I am staying in Bangalore on transfer. I want to know that whether I am eligible for deduction under section 24 or not. As my boss told me that I can claim myself only at the time filing of returns?

    Please Advice.

    • Prateek Agarwal

      You are eligible for claiming deduction and also to claim for lower deduction of TDS. For lower deduction of TDS you have to file form 12bb with your employer.

  33. I have home loan on my existing flat taken in 2009. My parents are residing in that flat. So am claiming HRA as well.
    Now, this year I took another plot loan for constructing home. So, can I claim Interest paid for both these loans i.e home loan and plot loan under 24(B). Kindly advice.

  34. I have property which is given on rent, i know the interest part is fully deduction under section 24, can i claim the deduction for the society bills which im paying on monthly basis ?

    • Prateek Agarwal

      No you can not claim such deductions. A flat deduction of 30% is given for such type of expenses.

  35. Sir,

    I paid full HBA with interest without break through my monthly salary. Due to my oversight I had not insured the flat for three years during loan period. What will be penalty I want to Pay. HBA Rs.225000/- at Interest rate 11%.

  36. HI,

    Can a non-salaried person claim housing loan tax benifit?

    Regards,
    Ravi

    • Prateek Agarwal

      Both salaried and non salaried persons are allowed to take benefits of housing loan tax benefit.

  37. Hi,
    I booked a flat in Dec 2012 and the first instalment of loan was disbursed in Feb 2013. The project has been delayed and it is unlikely that I would get possession in this financial year and in all likelihood I may get possession only in 2017-18.
    I have a house in the same city where I am staying now as SOP. There are two options after I get possession of the new flat. One is to shift there and make it as SOP. The other is to let it out and continue in my existing house as SOP. Can you please let me know the way the interest paid during pre construction period would get applied in both cases. Will it be limited only to 30K if I treat the new one as SOP.
    regards,

    Paul

    • Prateek Agarwal

      Yes the interest will be limited at rs. 30,000. If You get the possession till Dec 2017 then the limit is rs. 2 lakhs. In case of let out property there is no limit.

  38. Sir,

    I have a query. Kindly give an advice.

    I have constructed a house with two floors by taking a Home Loan from a bank in 2014. The construction has been completed in 2015. I am occupying in one floor and the other floor is let out.

    The deduction of Rs. 2 lakhs under Sec. 24 is available for self occupied property. What will be my claim of deduction of my house with two floors (one floor is let out) for FY 2016-17. Can I claim deduction of more than Rs. 2 lakhs?

    • Prateek Agarwal

      You should divide the interest by 2 (considering that both floors has same construction area).
      Half of interest is considered for the let out floor and allowed in full. And other half of interest is considered for self occupied floor and interest is allowed upto rs. 2 lakhs.

  39. Bipin Kishor Mundu

    I am 78 yrs old pensioner and I have a house constructed by taking a loan from bank in the year 2005. I am the borrower and my son is the co-borrower. I have leased the house to by son’s company for his residence purpose and getting the lease rent. My income is not much therefore I am not claiming benefit of interest on borrowed capital under Sec. 24 in my IT return. My son is claiming the benefit.

    My query is
    1. Is it necessary to claim benefit under section 24 (b) in my IT return?
    2. Just to determine my annual income, can I consider computation of Income from House property formula defined under sec 24 of IT Act including interest on borrowed capital ?

    • Prateek Agarwal

      1. It is not necessary to claim the benefit under section 24(b).
      2. Yes you can.

  40. Hello sir,

    Should we show Interest + Principal amount repayment as negative figure in Income from house property for SOP case.

    • Prateek Agarwal

      Only interest is allowed as deduction under section 24b. Therefore only interest portion is to be shown as negative figure in income from house property. Principal portion is allowed as per section 80C and therefore should be inserted there.

  41. Dr. Mukesh Chander

    Dear Sir,
    I have paid Rs/-1,63,000 as interest on home loan during AY 2016-17. My employer has shown it in form 16 also. While filing online return on ITR-1, there is no colomn where I can show this interest paid. kinldy guide me that how and where in the e-filing form, I can show this deduction.
    Thanking you in advance for your help
    Dr Mukesh Chander

    • Prateek Agarwal

      In ITR-1, you can enter net income (after deduction of interest u/s 24b) in B2 -> Income from One House Property.
      It is to be entered as negative amount in “Income from House Property”

      • Dr Mukesh Chander

        Thanks a lot for your help,Prateekji. Your site is helping a lot to the tax – payers.
        Regards
        Dr Mukesh Chander

  42. Hi Rohit,

    I have uploaded ITR-1 and received the acknowledgment for the current assessment year – 2016-17. I have claimed House loan (Principal+Interset). but i didnt received any notification for the submission of interset certificate and principal document. Can you please suggest, where Do i need to send the document or i can upload on income tax website?

    • Prateek Agarwal

      There is no need to send or upload the documents.
      You should keep theme with you if assessing officer calls for them.

  43. Dr G. C. Nayak

    HI Amit,

    I have two queries.
    1. what is the exemption limit on TA for Disabled persons for AY16-17?
    2. I have taken a home loan and while filling the ITR1, where I should mention the interest and principal?

    • Rohit Pithisaria

      Answer are as follows:-

      1) TA deduction is Rs. 1600 p.m for normal person and Rs. 3200 p.m in case of blind or orthopaedically handicapped employees.
      2) In ITR1, you can enter net income (after deduction of interest u/s 24b) in B2 -> Income from One House Property. For principal deduction enter the amount in C1 -> 80C.

  44. I HAVE TWO HOME AND BOTH INTEREST PAID AS BELOW DETAILS AND I AM IN JOB IN SURAT AND CLAIMING HRA .
    1.1ST HOME NOIDA Interest PAID 245000
    2. 2ND HOME GHAZIABAD Interest PAID 275000
    LET ME CLAIMING BOTH INTEREST IF SHOWING ONE SELF OCCUPIED AND ONE RENTED
    PL SEND ME WITH CALCULATION.
    REGARDS
    RAVI

    • Rohit Pithisaria

      There is no requirement to show any house property as SOP. The rule is only one house can be shown as SOP. So you can show both house as let out and claim all the interest deduction. Also you can claim deduction of HRA as the interest deduction u/s 24b is not related to HRA.

      • Dear Mr Rohit

        Thanks for reply , but my consultant not agree for both houses interest claiming in ITR for interest Rs.475000/- and suggest only claiming for 2 Lac max only for one house.

        Pl advise.

        • Prateek Agarwal

          Ask your consultant by which provision he is asking you to claim only rs. 2 lakhs as interest deduction.

  45. Hi Amit,

    I have taken a home loan in Dec 2012 for a flat I registered the flat on July 2016 ie more than 3 yrs. How the section 24b will be dealt in this case for tax benefit on interest portion. Will this property be treated as let out or self occupied? How much tax benefit I will get , Is it 200000 Rs. I just confused it is more thn 3 years in completion whether I will get tax benefit 200000 Rs or not.

    Please help us sort out this issue

    • Rohit Pithisaria

      If the property is let out then it will be treated as let out otherwise it will be a SOP (if you don’t have any other SOP). Now if it is let out then there is no limit on the deduction limit but if it is let out then the maximum amount is RS 2,00,000 when the construction complete within 5 years from the date of loan (applicable from FY16-17).

  46. CAN THE INTEREST PAID ON HOUSING LOAN BE CARRIED FORWARD AND CLAIMED IN SUBSEQUENT YEARS EG – IN FY 2014-15 I PAID 250000 AS INTEREST BUT COULD CLAIM ONLY 200000 DEDUCTION SO THE BALANCE INTEREST IE 50000 CAN I CLAIM IN 2015-16 ALONGWITH 2015-16 INTEREST

    • Prateek Agarwal

      No, there is no such provision which allows carrying forward of balance interest.

  47. Hi
    I have purchased flat jointly in the name of myself and my wife who is a housewife. Can i show income or loss from house property in my IT Return as wife not earning and not assessed to income tax?

  48. Taken loan on 5.2.15. Construction completed on 13.02.15. Pre construction interest on loan paid Rs. 1391. Deduction not claimed in IT Return of AY 15-16. Can i claim balance 4 installments of interest in AY 16-17 to 19-20 ?

    • Prateek Agarwal

      The amount of interest for the period before the financial year in which construction is completed is termed as pre construction period interest. For eg you take loan on 1.4.2012 and interest is completed on 13.02.2015 then interest of period 1.4.2012 to 31.3.2014 is only considered as pre construction period. So you can not take such deduction now.

  49. Hello Rohit / Prateek,

    If i bought an under-construction property on which i availed a home loan and before getting possession of the same, I re-sold;Now, at the time of filing my ITR; Can i claim the interest paid (towards cost of the asset in computation of Capital Loss / Gain) to the bank over the years i held the property although i had not got the possession of the same?

    Pls advise…

    regards

    • Rohit Pithisaria

      Hello Vikram,

      Pre construction interest is allowed in 5 equal interest from the financial year in which construction is complete. It will not be allowed to be added in the cost of the house property for computing capital gain tax.

      • Rohit Pithisaria

        Hello Vikram,

        Can you please give me some time to get back to you again. I am trying to find some case law which is similar to your problem.

  50. parwez akhtar

    I was getting my form 16 here i am availing house loan interest Rs 36818 u/s 24 but there is no option in e-returned file how can availed tax benefit of this amount

    • Rohit Pithisaria

      You are required to report a loss under house property to avail the benefit of deduction on interest on housing loan. You can avail this deduction at the time of filing ITR even if you are not having this deduction in your Form 16.

  51. hii
    i purchased a flat in 2013 which was under construction and i had a housing loan for it. the construction was over and i got registered on my name on 30-03-2015 . my employer said i couldn’t file the tax return unless i furnish the holding tax receipt and the details of my loan is not available on my form-16. i have the holding tax receipt now. so how to file the income tax this time. i don’t see a section 24 in itr1. i have the interest certificates with me. how to proceed further?? please help

    • Prateek Agarwal

      If your loan details are not in Form-16 then its not a problem to file ITR.
      ITR 1 is not for persons having income under House Property head. You should file ITR-2.

    • i opened the incometax site and it only gives me option of itr-1 and itr-4s. what to do? please help

      • Rohit Pithisaria

        You are required to file ITR-1 in case you have any income/loss under house property. However if you have any carry forward of loss then you have to file ITR-3.

        • Dear Sir,

          Where is the Option in ITR 1 -Housing Loan Interest amt Mention or Fillup …Please advise….do the needful

          • Prateek Agarwal

            In ITR1, you can enter net income (after deduction of interest u/s 24b) Income from One House Property.
            It is to be entered as negative amount in “Income from House Property”

  52. Hello,

    I purchased a House in the year 2006 and taken House Loan for Rs.10,00,000/-. Now I am paying around Rs.60,000/- towards Interest and Rs.40,000/- towards Principle. In June, 2016 I have purchased a second House (Rs 33,00,000) and taken a loan of Rs. 29,00,000/- and Interest will be paid around 2,20,000/- for this year. First House is self occupied and for second house I am getting total Rs.24,000/- towards rent this year. My question is whether can I claim total interest 60,000+2,20,000=2,80,000 under Section-24 or I have to reduce rent amount 24,000/- from 2,80,000/-.

  53. Hello Rohit,

    I had another query and wanted to know:

    1. Is it true that Interest paid on Home Loan before the possession can be claimed only within the next 5 years after the possession?

    OR Can this be still carried forward in one’s ITR as a Loss for the next 8 years as long as one does not sell off the property? Of course, If I do sell off, all the benefits availed in the ITR in certain financial years will be reversed, right?

    2. What Income Tax benefits I am entitled to considering Huge Interest that I paid to the Bank over the last 10 years, especially If in FY 2015-2016, I was in 30% tax bracket however from FY 2016-2017 on-wards, I may be fully exempted owing to no income in India and whatever notional, that will be well below taxable slabs.

    regards
    Vikramaditya

    • Rohit Pithisaria

      1) Yes, interest on pre acquistion or pre construction can be claimed within 5 year from the year of the completion. If there is a loss under house property then it will be carried forward for next 8 years. You can carry forward the loss under house property even if the house property is sold in next years.

      2) No other special benefit is available if you fall in lower income tax bracket.

  54. Hello Rohit,

    Assuming that I have got the possession of my property from the builder after a long 10 years of delay and now I have Rented out the property.
    The interest paid to the Bank on the Home Loan over the last 10 years should be added up as per the Home Loan Interest Certificate issued by the Bank or should I consider the Indexation cost of the Interest paid over the last 10 years?

    So for ex.
    As per Bank Interest Certificate: Interest paid in FY2007-2008 was INR 5,10,000
    However going by the indexation method, above interest would amount to INR 10,41,288.566 since FY 2007-2008 inflation index was 551 and the one in FY 2016-2017 is 1125..

    Pls advise…

    regards
    Vikramaditya

    • Rohit Pithisaria

      Interest shown in certificate will be added for calculating pre construction/pre acquisition interest. No indexation benefit is available under section 24b.

  55. Hello,

    I have only income from one house property and salary. Possession of house was given in Sept 2015.
    I need to claim pre construction emi interest, however I have doubt about which ITR form to be filled.

    In income tax site for AY16-17 for ITR1 it is mentioned that this form can be filled if “Income from One House Property (excluding cases where loss is brought forward from previous years)”, so here claiming Pre Construction emi interest amount in block of 5 year, will it be considered as “loss brought forward from previous years”.
    So will ITR1 still be applicable here or do I need to file other ITR form ?

    Please advice
    Thanks
    Ankur

    • Rohit Pithisaria

      In your case pre construction interest is not brought forward loss under house property. Brought forward loss mean a loss which is declared as loss in the previous year income tax return. Pre construction or pre acquisition interest shall be allowed in 5 equal installment from the year in which construction is completed. If this house is self occupied house property then there is a loss under house property in this year and it is carried forward to the next year (which will become brought forward loss for the next year).

  56. Dear Sir

    How to implement section 24 deduction from house property Rent income while in the income tax return for the AY 2016-17

    • Rohit Pithisaria

      In ITR-1 Sahaj, you do have to report net income from House Property (after all deduction such as standard deduction, housing loan interest etc). It does not require you to report individual figure for deductions u/s 24. Let me know if you are using any other ITR form.

      • Itr 1 allows max 2 lakh to be filled in for house losses. Is it dat total limit of 2 lakh is applicable even if interest of current AY is 2 lakh & one fifth of pre Emi interest is 1 lakh.. Am I not eligible for 3 lakh rebate. 2lakh current FY & 1 lakh previous yrs. If so than which Itr to be filled. If Itr 2 than how

        • Rohit Pithisaria

          The maximum limit of deduction in case of SOP (self occupied house propery) is Rs 2,00,000 which includes current year deduction as well as pre acquisition or pre construction interest. However, in case of let out property there is no threshold limit for interest deduction.
          Please select the correct type of House Property at the time of filing ITR. If you select Let Out then you can enter loss even exceeding Rs 2 Lakh.

    • Dear Sir

      I want to know in which section should we enter the interest amount of home loan under section 24b in ITR 1. there is no specific section like that in the form

      • Prateek Agarwal

        In ITR1, you can enter net income (after deduction of interest u/s 24b) Income from One House Property.
        It is to be entered as negative amount in “Income from House Property”

  57. We want to take home loan in SBI bank ,both are in central goverment employees .Property is in my husband “s name, here we want to take loan in my name ,my husband will be the co-applicant , from his account only EMI will cut every month who will get tax benefit.

    • Rohit Pithisaria

      Deduction for housing loan interest is only available to property owners.

  58. Hi Sir,
    Joint co-owner of the let out property, As I am paying 100% EMI, Can I claim 100% loan interest as a loss of property and property is let out so 50% of the rent income can I show as my Income ?
    Assume me and My wife are 50-50% shair.

  59. hi

    query for interest deduction on home loan on property rented out in different city (section 24)

    our family lives in city A and have business based in city A since ever. This house is under my parents name. i have bought a residential property in another city. i hv read about section 24 but got confused. Pls consider following points and advise:

    1) me & my wife’s are co-owners of new property in city B and this is the first house under our names.

    2) we have taken a joint home loan for 20 years. we can deduct interest paid on home loan in tax in ratio of EMI’s paid by each. our individual interest payable would be higher than the deductible limit of 2 lakhs.

    3) under section 24, total interest payable on home loan is deductible if property is rented out for part of whole of year.

    Now to save on tax, we plan to rent out the property. i have following confusions for the same:

    A) I read online if the assessee is living in a different city for work or business, the interest deduction gets capped to 2 lakhs.

    B) Our banker advised since this is the first owned property in my and my wife’s name, we can’t deduct total interest paid on home loan if you rent out the property. Such deductions are allowed only if it’s a second property in the owner’s name.

    So please advise for our case can we save total interest payable if we rent our new property.

    thanks in advance

  60. Hi,
    I am claiming Interest part in income from House, but I want to claim HRA as well.
    Please let me know in which section I need to claim that part.

  61. Mohammed Shafi

    HI,

    I have taken home loan on March-2015..since then paying EMI to the Bank.

    Can you please let me know in which section of ITR1 ( AY 2016-2017) do I need to put the details ( Interest + principal) to claim for exemption.

    • Prateek Agarwal

      You have to fill amount in negative figure in Income from House Property.

    • Can I claim tax deduction on interest paid on home loan for the under construction house by the builder

      • Prateek Agarwal

        Yes, you can claim such interest. But such interest is considered as pre construction period interest. Read the article to know about deduction of pre construction period.

      • Rohit Pithisaria

        The deduction for pre-construction/pre-acquistion interest is available only after completion of house property in 5 equal installment.

  62. No I am not using either.

    • Prateek Agarwal

      You are required to put the amount deducted from your salary in column of Tax Deducted at Source column. There is a section in all forms where you can show the amount which is deducted from your payments, TAN no. of the employer is also to be feed. Section under which TDS is deducted is also asked, which is section 192 in your case.

  63. My employer did not consider my interest payment on housing loan Rs. 3,35, 176 =00, while calculating tax and I ended up paying more through my salary. Now he wants me to claim while filing returns. Please tell me how can I claim that deduction while filing online returns. Also It is observed from Form 16 that , He has paid more tax than net payable . I understand limit for Interest on home load is only upto Rs. 2,00,000=00. That is Ok . But let me know , where to put those values in online form.

    • Prateek Agarwal

      Are you using income tax department’s excel utility or any third party services?

  64. I have cleared my home loan in March 2016. Now from this financial year, will there be any way to save the tax which I was getting under this section 24 (Rs.2,00,000 limit)?

  65. Seshdev Satapathy

    I have taken a home from TATA finance loan for purchase of resale house. Pl tell me whether I m eligible for tax rebate under sectin 24 of IT Act

    • Prateek Agarwal

      Its irrelevant whether the house is new or old. Therefore you are eligible for tax rebate under section 24b.

  66. Hello
    Sir,

    I have taken a property name my wife she is a House wife . payment paid by me. My question is claim “Interest on Loans” by me.

    • Rohit Pithisaria

      Deduction u/s 24b is allowed to the owner of the property. As the property is in the name of your wife, deduction u/s 24b is not available.

  67. Mr Rohit,

    Thanks for ur reply. Your reply indicates that Section 80 GG of IT Act will not be applicable if the employee was in receipt of HRA anytime during the FY no matter whether the assesse/employee was not under employment for a part of the FY. Kindly clarify.

    • Rohit Pithisaria

      Yes, 80GG shall not be allowed. As per act “In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent “

  68. HI,

    Let me know if you i took loan in 14-15 and possession comes in 15-16. i have paid interest before of Rs. 150000/- . as per condition i will get 30000 as rebate for years. what if i pay home loan within 4 Yrs how the interest need paid before possession to be calculated. it will be 150000/5 or 150000/4 please sha

    • Rohit Pithisaria

      Pre construction/pre acquisition interest shall be allowed in 5 equal installment so you can claim Rs 30,000 beginning from FY 15-16 till FY 19-20. Even if you repaid your loan then still it shall be allowed in the above mentioned manner.

  69. Mr Rohit,
    one of relatives worked in two companies during FY 15-16 with a break of 10days in sept, oct and nov full month and 13 days in Dec,15. He is allowed deductions under sec 10(13)A for the period excluding above broken period when he was not in service although he was in a rented house and substantial amt of rent has been paid. Tell me whether he can separately claim the deduction under the above section. If not, whether Section 80 GG will be applicable for broken period rent and show how to calculate and show in the IT return file.

    • Rohit Pithisaria

      Deduction u/s 80GG is not available to those assessee who receipt HRA at any time during the year so it is not available for your relative.

  70. I have 2 property…on one property I take hsg loan nd on another one mortgage loan…nd both the flat I had given 4 rent…nd I leave on rent in another flat…so can I consider both the property as let out…nd even mortgage int also allowd as deduction in 24b…plz tell me

    • Rohit Pithisaria

      Interest u/s 24b is allowed for Purchase/ Construction/ Repair/ Renewal/ Reconstruction of a Residential House Property. If you have taken any type of loan (even mortgage loan) then it will allowable u/s 24b.

  71. Hi Rohit,

    I have taken a joint property with my wife and we both are working. I will be letting out the property for rent and i want to claim HRA. My question is should we both me and wife claim HRA or only I should claim HRA. Me and wife will claim full intrest and prinicipal payed for home loan.

    • Rohit Pithisaria

      Hello Arjun,

      HRA and deduction u/s 24b (or 80C for principal repayment) are not related to each other so you can both claim HRA as well as proportionate deduction for principal repayment u/s 80C. Regarding the deduction of interest, the property will be assessed as it is owned by single owner and the net income from the house property will be apportioned between you on the basis of your respective share. For more details please check the below articles:-
      http://taxadda.com/income-tax/house-property/taxability-in-special-cases-under-house-property/

      Thanks

  72. Dear Rohit,
    I have booked a flat in April 2010 in Noida, for that possession was done on 15th March 2016 and registry is done on 12th April 2016. Home loan for this property was started in October 2010.

    This is a joint owner registration with my wife and we have rented out this property from 15th April 2016.
    We have prepared the rent agreement at my wife name and rent cheque also will be coming to her name.

    As I understand benefits of Home loan interest can be taken only after possession/registry… so in this case, can you please suggest, what all income tax benefits we can claim from this year onward and under which section. Also how that benefits needs to be divided between my wife and me.

    If you can share some calculation based details then that will be very helpful to me and others, looking for similar details.

    Thanks a lot in advance.

    • Rohit Pithisaria

      Hello,

      I suggest you to read the following articles:-
      http://taxadda.com/income-tax/house-property/co-ownership-sec-26/
      http://taxadda.com/income-tax/house-property/taxability-in-special-cases-under-house-property
      http://taxadda.com/income-tax/house-property/gross-annual-value-of-house-property/

      I will also summarize it for you:-
      1) As it will be a let out property so all the pre construction interest shall be allowed in 5 equal installment from the FY 2016-17. There will be no limit on deduction of interest u/s 24b as it is rent out property.
      2) Current year interest can also be claimed from FY 2016-17 and there will be no limit u/s 24b.
      3) You can also claim principal repayment at the time of filing personal tax return u/s 80C. The overall limit under this section is Rs 1,50,000 for each assessee. You can only claim your share from the principal repayment from the FY 2016-17.
      4) The income of the house property shall be first computed as it is owned by a single person and then the net income shall be apportioned between you and your wife on the basis of the definite share in the house property.
      FYI – You can claim the house property in the FY 2015-16 or FY 2016-17 as per your need as you got the possession of the house property in the FY 2015-16 and registry is done in FY 2016-17. If you claim this house property in FY 2015-16 then the house property shall be treated as deemed to be let out for the year 2015-16 and taxable on that basis. I personally suggest you to treat it a house property in the FY 2016-17.

      • Dear Rohit,
        Thanks for your detailed reply….

        in this case….do you mean that I can claim tax benefit on below mentioned pre constuctions interest and current year interest from FY 16-17 ?

        1. All pre constuction interest paid between Oct 2010 to March 2016 divide by 5. Lets say 50000 Rs.
        2. Interest amount of current year. lets say 200000 Rs.

        Also can you pls check and confirm if this will be the total income calcualtion…

        1. Rent received for Fy 16-17 – lets say Rs 200000
        2. Property Tax – Rs 5000
        3. Annaul value = Rs 195000
        4. Standard deduction (30% of annual value) = Rs 58500
        5. Total income from house property = Annual value – Standard deduction – Interest for FY 16-17 – Pre construction interest for FY 16-17
        = – 113500 Rs ?

        but now next question is how we can devide this loss/income in both the co – owner as we have not defined anything anywhere in that perspective. Also my wife is not earning much and not paying any tax as of now.

        So how this income/loss can be claimed… can I claim full against my salary ?

  73. Dear Rohit, I am buying a house of 33L on joint name (I and my wife) both have income. Home loan of Rs. 30L will be on my name only. I’ll get the possession of the property in 3 months (not sure of completion certificate though). We will not be occupying the house. However will be getting an income from rent in my wife’s name from the property. This is our first property.

    Could you please explain the Taxation for me and my wife can claim. Thanks.

  74. dr ravinder minhas

    I purchased a house in 1995.took 80cc&interest benefits for income tax.I sold it in 2008.I Purchased another house taking house loan from bank out side of my place of my work and rented it out.i have purchased another house at my place of work by taking loan of bank this year after 5 years .what benefits i can claim on these.

    • Rohit Agarwal

      Hello,

      The overall limit of deduction u/s 80C is Rs 1,50,000 (assessee wise). You can claim principal repayment of loan on house property (even more than 1) upto this limit whereas deduction for interest u/s 24b is property wise, so you can claim deduction for interest on house property for each individual property. There is no limit of interest deduction u/s 24b in case of let out property or deemed to be let out however in case of SOP (self occupied house property) the limit is Rs 2,00,000.

  75. Hello,

    I had taken a loan for 26 lakhs for a purchase of a flat in 2010. The principal is 1,63,394 and the interest is 1,48,438. The loan is still going on. In June 2015 I purchased another flat in the same city and got the procession on 20th March 2015. For the second I took loan and have paid interest 1,72,664. I am planning to give on rent the second flat on rent. Please let me know the tax benefit for FY 2015-16.

    Thanks

    • Rohit Agarwal

      In case of rented property, there is no limit on deduction of interest u/s 24b whereas the overall limit u/s 80C is Rs 1,50,000 for principal repayment (for both the house property).

  76. Hi I work and live in Mumbai and bought a house in Tamilnadu using a HDFC home loan of 55 L in 2015. The house is rented out. In Mumbai I live in a Govt quarters. My question is How much of the Interest paid (I pay about 5 L of interest per year) can be claimed through 24b.

    • There is no limit in case of rented property. So complete interest (about 5 lakh) is allowed under section 24b.

  77. Both benefit i.e Interest u/s 24b and Principal u/s 80C is available to resident and Non resident both assessee?

    • Yes, the deduction u/s 24b as well as principal repayment u/s 80C are available to all individuals (resident or non-resident).

      • Jitendra Kulkarni

        Hello Sir,
        I Purchase Flat at Pune for Rs. 7000000/-
        and taken loan from Bank of Baroda for Rs. 3000000/-
        and i paid interest on these loan around rs 26000/- per month.
        so how many amount of deduction from my gross income ?

        • Prateek Agarwal

          If you have let out such flat then whole interest is allowed.
          If you are using it for yourself then maximum of rs. 2 lakhs is allowed per year.

  78. hello,
    i take home renovation loan two time in a year with same name.
    now i want to know what is the max limit which i can claim as tax benefit?
    can i claim benefit for both principle payment as well as interest payment?

    • Rohit Agarwal

      The maximum limit for renovation of loan under section 24b is Rs 30,000 for interest. No deduction is allowed under section 80C for repayment of principal component of loan in case of renovation.

  79. Hello sir,

    We purchased one house on my father’s name and the registry of the house is also on my father’s name. We availed one loan from the bank and in this loan me, my father and my brother are co-borrowers and while arranging that loan my income and my brother’s income was considered for repayment of the loan. I have one question that can me and my brother can avail income tax benefit under section 24b.

    • Rohit Agarwal

      Deduction u/s 24b is allowed only to the owner of the house property so no deduction can be availed by Co-borrowers.

      • Sir but bank officials are telling that you can avail the tax benefit bcoz we have sanctioned loan on the basis of income of me and my brother. Can you plz provide the circular regarding co-borrowers of the loan under section 24b where it is mentioned that only owner of the property can avail tax benefit.

        Thank you in advance

  80. SIR, I GOT HOUSING LOAN IN LIC.IT IS JOINT PROPERTY. HOW I USE THIS LOAN FOR TAX BENIFITS. I ASKED LIC TO GIVE CERTIFICATE FOR 50% OF LOAN UTILIZATION IN TAX RETURN. BUT THEY TOLD,DON’T HAVE THE RIGHT TO GIVE LIKE THAT CERTIFICATE.
    PLEASE GUIDE ME WHO GIVES THIS CERTIFICATE?

    • Rohit Agarwal

      As the hosing loan is taken from LIC so they will provide you the certificate. You can ask them to provide you the provision certificate for the year ending on 2015-16 for your loan account number (no need for mentioning 50% of the loan amount). Ask them to provide such certificate in writing. If they denied then you can file a complaint against LIC in RBI.

  81. rajesh sawant

    From Rajesh Sawant

    Please refer to my earlier post.

    In both the case Me and my wife is co-owner and co-borrower. how can we divide tax benefits and how much is eligible. Principal and Interest.

    • Rohit Agarwal

      Hello,

      I have already answered this in my previous comment. Just reposting it for your convenience:-

      1) Even if you do the registration in March you can claim the tax benefit u/s 80C. The overall limit of the deduction under section 80C is Rs 1,50,000 including the principal repayment on housing loan. So it doesn’t make any difference if you registered in this month or next month under section 80C as you have already exhausted that limit. Limit of 80C is assessee wise not property wise so both person can claim their share of principal repayment (on the basis of share in house property) in their individual return.

      2) Ask your bank for issuing provisional interest and 80C certificate for the year. You can gathered that information from that certificate.

      3) As the house property is SOP, both person have individual deduction limit of Rs 2,00,000 u/s 24b. So the total interest paid shall be apportioned between you and your wife on the basis of the ownership share in the house property.

  82. rajesh sawant

    From Rajesh Sawant

    I have a house on which I have taken loan in 2005 and paying 23000- principal and Rs.115000/- interest. This loan still exists.

    Now I am buying a house in another city. I have rented the first house having rent of Rs.15000/- per month.

    The new house will cost Rs. 4,500,000/-. What will the total tax benefit considering new deduction of principal and interest from my salary. Please guide

    Thanks

    • Rohit Agarwal

      Hello,

      The deduction will be as follows:-

      1) Old house which is rent out property
      Interest deduction – No limit as the property is let out now.
      80C – 80C limit is assessee wise so the total deduction allowed (for principal repayment of both the house property) shall be Rs 1,50,000.

      2) New house which is considered SOP
      Interest deduction – Limit of Rs 2,00,000 is applicable as it is SOP.
      80C – 80C limit is assessee wise so the total deduction allowed (for principal repayment of both the house property) shall be Rs 1,50,000.

  83. Hi,

    It’s my first buy hence the query. I have purchased a ready flat this month for self use, directly from the builder, with my wife as a co-borrower and co-applicant for a bank loan of 45 lacs (already sanctioned). I am ready to pay my contribution to the builder, however I am not sure when should I do the registration of the property. My query is, 1. If I do the registration next month in April, I will be able to gain tax benefit under 80 C (1.5 lacs). Correct? Can both of us get the benefits? Both us have already done 1.5 lacs investment under 80 C for current financial year OR should we do it this month itself. 2. Will the principal amount of my loan cover the entire 80 C limit 3. Can both of us claim 2 lacs each exemption on the interest part.

    Thanks in advance for your help.

    • Rohit Agarwal

      Hello,

      Did your wife have a joint ownership in the property as well? If not then no deduction is allowed to her even if she is co-borrower/co-applicant in housing loan. If she have a definite share in the ownership of the property then the law shall applicable as follows:-

      1) Even if you do the registration in March you can claim the tax benefit u/s 80C. The overall limit of the deduction under section 80C is Rs 1,50,000 including the principal repayment on housing loan. So it doesn’t make any difference if you registered in this month or next month under section 80C as you have already exhausted that limit. Limit of 80C is assessee wise not property wise so both person can claim their share of principal repayment (on the basis of share in house property) in their individual return.

      2) Ask your bank for issuing provisional interest and 80C certificate for the year. You can gathered that information from that certificate.

      3) As the house property is SOP, both person have individual deduction limit of Rs 2,00,000 u/s 24b. So the total interest paid shall be apportioned between you and your wife on the basis of the ownership share in the house property.

  84. I am planning to buy a flat costing Rs 45.00 lakhs. I am a salary earner and wish to avail Home loan of Rs 35.00 lakhs individually and will be paying the EMI. I wish to hold the property Jointly along with my mother who is house wife and not assessed for IT.

    As per the recent budget announcement, A first time home buyer is eligible for an additional Interest benefit exemption of Rs 50000.
    Kindly let me know the tax implications in this regard and other likely conditions for Home loan requirement.

    • I suggest you to purchase property in your name as your mother is not assessed for IT. If you purchase house jointly, then all the deductions available in the Income Tax Act will be apportioned between both of you in the respective ownership share.

      The additional deduction has been given on interest for loan up to Rs 35 lakh, provided the house value doesn’t exceed Rs 50 lakh. This additional deduction is applicable only to the first time home buyer.

  85. I booked flat in the year 2012 & received 100% work completion certificate from Archietect & property is ready for fitout possession.

    My home loan is fully disbursed by the bank & started EMI but i have not yet taken possession of the property.

    In this case, can I claim for Income tax deduction for interest paid (considering construction work is fully completed).

    Pls advise.

  86. what if an individual residence of India has a property in london which is let out, for the same a housing loan has been taken from HSBC bank UK.and interest is being deducted from his own HSBC housing loan account. Is the interest on hosing loan paid to UK bank is deductible u/s 24(b) while computing income from HP.

    • Hello Akash,

      As per my understanding the interest paid shall be allowed as deduction under Section 24b because of Section 25. As per Sec.25 notwithstanding anything contained in Sec. 24 any interest chargeable under the Income-tax Act, which is payable outside India on which tax has not been paid or deducted under Chapter XVII-B and in respect of which there is no person in India who may be treated as an agent u/s 163, shall not be deducted in computing the income chargeable under the head “Income from House Property”.

  87. hello sir i wanted to ask that in case of self occupied house there is a limit of 200000 interest deduction in every year..if the amount of interest paid in the current year is more than the limit so will there be any carry forward in the next year..??

    • Prateek Agarwal

      There is no provision of carry forward of deduction to the next years.

  88. Hello Rohit,

    By far, this is one site where complete explanation has been done wrt Home Loan Treatment wrt Income Tax. Thanks.

    I do have a question though, assuming – I am an employee and bought an under-construction property (for rental purpose) in joint ownership (with my mother) in 2006 and secured a home loan (from HDFC) of INR 50 lacs (againt joint home-loan) however the builder only provided possession in Jan 2016. Over the last 9 financial yrs or so, I and my mother have paid interest in excess of INR 35 lacs.
    I and my mother both are individual tax payers.

    My questions are:
    1. Considering the total interest paid of INR 35 lacs and dividing the same by a factor of 5; can we individualy claim a tax benefit of INR 3.5 lacs each or how exactly should this be computed other than the interest payment benefit of 2 lacs for the current financial year?
    2. Assuming that the aggregate income tax that I pay in a year is around INR 2.4 lacs, then how will the above computations – 3.5 lacs and 2 lacs be treated and how will the tax computation be done?
    3. In the next financial year, I plan to move out of India and will therefore not have my current job in India and will therefore have only limited rental income out of this property; how will i then get the benefit of the interest paid to the bank – i mean the benefit to be taken for the next 4 year period?

    Thanks.

    • Rohit Agarwal

      Hello Vikram,

      Thanks for your feedback. In regards to your query, please find the below answer:-

      1) If the share in the house property is known then the income from such property shall be first computed as if this property is owned by one owner and thereafter the income so computed shall be apportioned amongst each co-owner as per their definite share. So the deduction under this section shall be Rs 7 Lakh (for pre construction period) and the interest for that financial year shall be allowed. After this, the resulting gain/loss from the house property shall be apportioned between the co-owners in their ownership ratio. There is no ceiling of deduction u/s 24b in case of let our property. Please read computation of house property in case of co-ownership for more details.

      2) Please check above response.

      3) Yes, the pre construction/acquisition interest is allowed in 5 equal installment so the benefit shall be deferred to the next 4 years.

  89. Can anyone provide relevant circular/clarification regarding allowability of deduction u/s 24(b) to coborrowers and coowners ? Text of the section seems silent about the provision.

    Thanks in advance !

  90. Hello Team,

    I have paid pre-construction interest Rs.100000 which i can avail in 5 equal installments after completion of construction. But while making declaration in my company for TDS, they are not accepting pre construction interest part. they are saying that they will consider only current year interest and I have to claim pre construction part while filing ITR.
    My question is, whether there is any provision due to which they are not accepting it or it is just their view.

    Please help.

    • Hello Lokesh,

      Pre construction interest as well as current year interest are allowed u/s 24b. So, I do not find any genuine reason for not accepting the pre construction period interest declaration by your employer. Also, Income Tax Act do not have any explicit provision which suggest pre construction interest can be claimed only in the ITR.

  91. Sir,

    I have income from salary and income from house property (house is let out) and obtained two loans from SBI one is HOME LOAN(25 lac) and the other one is SBI HOME EQUITY LOAN (10 lac)

    In the FY 2015-16 I remitted Rs.2,50,000/- towards interest on HOME LOAN and
    Rs.1,04,228/- towards interest on HOME EQUITY LOAN

    Can I get exemption for interest upto Rs.2,00,000 from Income from salary and the balance of interest Rs. 1,54,228 from Income from House property.?

    Is it possible for me to adjust the loss of ‘income from House property head’ from ‘income from salary head’?

    Kindly clarify.

    • Rohit Agarwal

      As the house property is let out, complete interest on the housing loan is allowed as deduction and if there is any loss under house Property then it can be adjusted from the income under the head salary.

      For computation of income under house property, please visit this page.

  92. ARUN Kumar SONI

    I have taken a home loan in sep2012 for a society flat which is expected to be completed in june2016 ie more than 3 yrs. After getting possession I will give it to my company on lease and company will give it to me for my residence. The flat is in the joint name with my wife but the loan is in my name only. Company will pay about Rs15000 to me and my wife each. How the section 24b will be dealt in this case for tax benefit on interest portion. Will this property be treated as let out or self occupied?

  93. ABHAYA KU KANDI

    Sir, I have taken a personal loan from CBI, for the purpose of repair and renovation of house as my parents are dependent on me, can I get the interest rebate u/s 24 (b) up to 30,000?

  94. Hello
    The Joint owners, who are also co-borrowers of a self occupied house property can claim deduction on Interest on Home Loan up to Rs. 2 Lacs EACH.
    IS IT CORRECT?

    • loan taken jointly but one of them is not owner of the self occupied house property. Can both claim under deduction on interest u/S 24.

      • No, deduction u/s 24b is only available when assessee is the owner of the property.

      • if both husband & wife are co owner of property and co borrower of loan taken then both can get the benefit of deduction u/s 24 & 80C but much

        • Rohit Agarwal

          Deduction u/s 80C is assessee wise so the individual limit of Rs 1,50,000 is available for each and every co-owner. In case of house property:-

          If the definite share of the co-owner are known
          a) If house is SOP by both the co-owner then the deduction u/s 24b is available to each co-owner separately i.e. each co-owner can claim deduction upto Rs 2,00,000/30,000 as the case may be.
          a) If house property is let out then the income from such property or part thereof shall be first computed as if this property or part thereof is owned by one owner and thereafter the income so computed shall be apportioned amongst each co-owner as per their definite share.

          If the definite share of the co-owner are not known then the Income shall be assessed as Association of Persons.

    • Hello Shiv,

      Please check the below link which have complete details regarding your query. Let me know if you still have any queries.

      Case 1 – Where house property is owned by co-owner and self occupied by each of co-owner

      Case 2 – Where house property is owned by co-owner and entire or part of the property is let out

      • construction of house should be completed within three years of loan taken. Till then no benefit of u/S 24 & 80C be given. if given what are the procedure please elucidate detail wise. the interest within three years accrued on the loan how it can be claimed in future.

        • Rohit Agarwal

          You are just required to report the figures in the ITR section of Income from House Property. No document is required to claim the deduction u/s 80C or 24b at the time of filing ITR.

  95. Dear Rohit,

    I have taken personal loan(Rs.4,10,000/-, 36 EMIs) from Bajaj fin serv, on april,2016, Monthly EMI-14,113, From April,2015, to Feb,2016,I have paid the interest around Rs.40,000/- Can I avail tax benefits on this loan interest under sec.24(b)?.

    • Rohit Agarwal

      As suggested earlier –
      “If you have used the loan amount for the construction / acquisition / repair / renewal of the house property then you can claim deduction u/s 24b subject to the limit specified. It doesn’t matter whether the loan is housing loan or personal loan.”

  96. My wife taken a house loan from nationalized bank. she is in Govt service and also tax payer. The land of which construction is started is in her name . I am only the grantor. I am also in govt service. Can I also claim the benefit of interest accrued on this loan.

    • Rohit Agarwal

      No, only the owner of the house property can claim the deduction u/s 24b.

  97. Dear Rohit,

    I have taken personal loan from Bajaj fin serv, on april,2016, Monthly EMI-14,113, From April,2015, to Feb,2016,I have paid the interest around Rs.40,000/- Can I avail tax benefits on this loan interest under sec.24(b)?.

    • If you have used the loan amount for the construction / acquisition / repair / renewal of the house property then you can claim deduction u/s 24b subject to the limit specified. It doesn’t matter whether the loan is housing loan or personal loan.

  98. Kashid Narendra Vitthal

    Respected sir
    While filling the SAHAJ ITR-1, their is no column or row or cell in the form to fill the amount 2.00 lakh as exemption under 24 b then, in which section the amount of the same should be filled.
    pls guide

    • Rohit Agarwal

      Hello,

      SAHAJ ITR-1 is only for individuals having income from salary and interest. You are required to file ITR-2 in case you want to show any income/loss under House Property.

  99. Sir, I have purchased property in Pune under construction on 21-3-2013 and completed on 10-9-2015 still it is vacant and I am staying in Nagpur for company work I have shown self occupied in Declaration form to company but company is saying that you should give us one rent copy for that area from 99acres.com . what I should do for this and can I claim for interest paid in financial year before.

    • The gross annual value of SOP is nil and you can claim interest deduction as below:-

      1) Interest paid from 21-03-2013 to 31-03-2015 -> Interest paid for this period is pre construction interest and shall be allowed in 5 equal installment beginning from FY 2015-16.
      2) Interest paid from 01-04-2015 and thereafter -> Interest shall be allowed in same financial year in which it is incurred.

      As the house is show SOP, the overall limit of the deduction u/s 24b is Rs 1,50,000.

      I am not sure why the company is demanding a rent copy as you have already claimed it SOP and gross annual value shall always be nil.

      FYI – You can claim one single property as SOP.

  100. Is there tax relacation for extension of house
    Wat is the amount to be deductef for extension of house

    • The limit is of Rs 30,000 in case of SOP whereas in let out property actual interest is allowed without any ceiling limit.

      • I am a bank employee and have taken a home loan under staff loan for rs 4250000/- o. 30-9-15.to purchase under construction flat likely to be completed by 2017.I got two years moratorium (no int. & principal to paid) period whether interest debited in the account can be claimed for deduction under sec 24

        • Rohit Agarwal

          Just answered your recent comment. Apologies for the inconvenience caused to you.

  101. Is there tax relacation for extension of house

  102. I stay in mumbai in a rented house but I have purchased a new flat in Mumbai on Jan’15, its construction completed in Dec’15 and its vacant until now. planning to give it for rent from Feb’16 onwards.
    For the purpose of claiming,
    1. Can I claim HRA for the period Apr’15-Mar’16 for my rented house where I stay during this period.
    2. Can I also claim interest on housing loan for Apr’15-Mar’16 for the new house as both the houses are in the same city.

    • Prateek Agarwal

      1) There is no condition that if you has your own house than you cannot claim HRA. Therefore you can claim HRA.
      2) There is also not any condition which prevent you to claim interest. Therefore you can also claim interest under section 24b.

  103. Hi,

    I have taken a home loan for buying a ready to move in house in Faridabad in 2013. This property is let out. I am presently living in Delhi due to proximity to my wife’s office. My wife is claiming HRA of the rent paid in Delhi.
    Can I treat my house in Faridabad as let out property and claim deduction of entire interest (>2lac) while calculating loss on house property.
    Is there any condition that I should have two home loans for two different properties for claiming one property as let out?

    Regards,
    Rohit

    • Yes, you can declare property in Faridabad as let out and claimed complete housing loan interest u/s 24b.

      • Thanks a lot Rohit,

        One last query:
        Is there any condition that I should have two home loans for two different properties for claiming one property as let out and entire interest on its home loan? (I have been told so by my payroll department.)

        Regards,
        Rohit dhawan

        • The maximum number of house which you can claim as SOP is one. There is no provision which make mandatory to claim a house as SOP if you have only one residential property.

  104. MG Anandrmurthy

    My friend purchased a house with two floors and availed loan from SBI. One floor self occupied and other floor has been let out. He has paid Rs 6 Lacs as interest on loan for FY 15-16. Kindly help us to find the interest eligible for exemption in his case.

    • Prateek Agarwal

      In this case rs. 3 lakh will be considered as interest for self occupied portion and rs. 3 lakh for let out portion.
      Since there is a limit on deduction for self occupied of rs. 2 lakh, total deduction allowed is 2+3 =5 lakhs.
      It is assumed that both portion are built in equal areas.

  105. Sarang Jagtap

    Hi
    Thanks for answering our queries
    Interest payment started from Nov 2015…..House is still under construction.
    Can one claim
    HRA as well as Interest portion paid in 2015-16 .
    Appriciates your response.

    • Prateek Agarwal

      HRA can be claimed in your case.
      However interest can be claimed only from the financial year in which construction gets completed.

  106. Hello
    This is indeed a great effort by you.
    I would like to know is there any Interest Exemption U/S 24 of I.Tax Act available for purchasing a old house ?
    Thank you

    • Rohit Agarwal

      Interest deduction u/s 24 of Income Tax is available on purchasing old as well as new house.

      • Thank you Mr Rohit Agarwal .Would you please let me know kind of documents are requiredto claim that interest .Sale deed would be enough or not or do it need any kind of possession letter by the Purchaser (of the old house) or some sort of self declaration ?
        Thank you

  107. Hello ,
    I have taken an Housing Loan to purchase House in June2015 .Now construction is completed ;
    I got my possession on Dec 2015 & this is my second home loan.
    So Can I claim full interest for deduction .
    Nishant

    • Prateek Agarwal

      Yes, you can claim full interest for deduction subject to the limit of rs. 2,00,000 (if self occupied).

  108. i made home loan repayment of 5 lakhs rupees, but from this 5 lakh i can claim only 1.5 lakhs. can i claim rest of 3.5 lakh in next financial year 2016-17.

  109. I home loan sanctioned on 26/03/2012. and i took possession on 06/12/2013. the interest which accrued in that period is about 125000/- which i dint claim till now.
    i just want to know that can i divide 125000 in five equal parts and claim that in this financial year and coming financial years

    • Rohit Agarwal

      Hello Shiva,

      The pre construction period interest is from 26/03/2012 to 31/03/2013. The interest for this period shall be divide in 5 equal installment and can be claimed from FY 13-14. Also the interest from the period 01/04/2013 can be claimed in the same year.

  110. Additionally if loan value is more than 1 cr. Is there any limit upper case beyond which one cannot claim interest and principal rebate…

    • There is no upper limit defined for the loan. However the limit of deduction u/s 80C is Rs 1,50,000 whereas no upper limit is defined for interest u/s 24b in case of let out property whereas in case of SOP it is Rs 2,00,000/Rs 30,000.

  111. Hi
    Thanks for answering our queries.
    Just want to check…
    If possession is in early 2017….EMI started from Dec 2015…..House is for self stay….first property
    Can one claim
    HRA as well as Interest portion paid in 2015-16 and in next financial year….along with principle portion of Loan repaid…..

    Appriciates your response.

    • Hello,

      The interest for the period from Dec 2015 to Mar 2016 is pre construction/acquisition interest which can be claimed in 5 equal installment beginning from FY 2016-17.

      You can claim HRA in the FY 2015-16 along with the period till you get the possession of the house property. However principal repayment of the loan can be claimed only after the acquisition of the house property.

  112. Sesha Srinivas

    Hi Rohit,

    That’s a splendid job by you, both the article and your replies for queries. I request you to kindly guide me on the following:
    1. I have booked a flat in my home town in AP, which costs 33.50 lakhs+registration and others. Out of which 30.50 through loan and remaining through funds borrowed from family and friends. The flat will be registered in the month of Feb, 16. In this regard, how I can claim registration & taxes under rebate?
    2. The loans I borrowed from family and friends: is there any way i can claim IT rebate on these? Since, there will be no documentation for these loans
    3. If there is no moratorium on my repayment, can I claim tax rebate on interest portion of loan EMI paid in the month of March, 16 for the 15-16 year?

    Regards
    Sesha Srinivas

    • Hello,

      Thanks for your comment.

      Please find my response below:-

      1) You can claim expenses such as stamp duty, registration fee or any other expenses for the purpose of purchase of such house property by the assessee. Please read Section 80C for complete details.

      2) If you are paying interest to the family and friends, then you can claim it this interest as per the provision of Section 24b however repayment of principal to your family and friend shall not be allowed as deduction under section 80C. If you do not have any proof of the interest payment then I suggest not to claim that part of interest for deduction u/s 24b.

      3) If you have the possession of the house property in the March 2016 then you can claim the interest in the same year but if you do not have the possession then it shall be considered as pre construction/acquisition period interest and shall be allowed in 5 equal installment beginning from the year of completion/acquisition of house property.

  113. Hi,

    I purchased a flat in Sep 2012 and home loan started in Nov 2012.
    As I understand under section 24B if property possession not taken within three years then benefit reduces to 30,000 from 200000. Bank has disbursed all the amount till July 2015.

    So is it also applicable on CLP (construction linked plan) because my EMI started in Nov 2012 and its still going on?? and if I do not take possession till March 2015 then benefit of 200000 will not be applicable??

    Thanks

    • Rohit Agarwal

      Hello,

      The time period of 3 years is calculated from the end of the financial year in which capital was borrowed. So the benefit will get reduced to Rs 30,0000. if the possession of the house is not acquired before March 2016. Also this condition is only applicable in case of SOP not let out property.

      • Hi Rohit,

        thanks for answering my query. One more thing, last year I transferred my home loan from HDFC to SBI. My new home loan with SBI started from AUG 2015.
        So in this case the year in which capital was borrowed would be considered as NOV 2012 (HDFC) or AUG 2015 (SBI) and the three years counter will be considered from AUG 2015 or NOV 2012??

        Thanks,

        • Rohit Agarwal

          The three year counter shall be calculated from the initial loan date (Nov 2012).

  114. Hi Rohit,

    i will be getting possession of my housing property in March 2016, where i have paid abt 3.2 lacs as interest in 2015-16, and 1 lac in 2014-15. the property is expected to be put on rent.

    in this scenario
    1. can i claim interest component this year
    2. since i would be letting out the house on rent only for March 2016 – my rental income will be 1 month: lets say 10,000
    3. hence i would in fact have a loss of 3.2-0.1 lacs + 20%*1 lac=3.3 lacs >> is this correct?

    • Hello,

      Please find my reply below:-

      1) Pre construction/acquisition interest can be claimed in 5 equal installement beginning from the year of completion of house property. Pre Construction/Acquisition period starts from the date of borrowing and ends on the last day of preceding Financial Year in which the construction is completed. In your case Rs 1,00,000 paid in the FY 2014-15 shall be pre construction interest. So, in this FY 2015-16 you can claim Rs 20,000 for pre construction/acquisition.

      2) Okay.

      3) Yes, you are having a loss of Rs 3,30,000 in the FY 2015-16.

      • Thanks for the revert Rohit.
        Assume this loss can be set off against my income and hence forms a net tax saving for me.

        • Rohit Agarwal

          Yes, it is a loss from House Property and can be adjusted against your other income and hence serve a medium for saving tax.

  115. Hello, I own a piece of land in Kerala and planning to construct a house there shorty. For this purpose I am planning to take a housing loan of 10 Lakhs for a period of 5 years. In this case can I claim IT benefit for the housing loan interest paid to the bank for all the 5 years? Or if can I only claim for 1 year within which I finish construction of the house?. Please help clarify.

    • Hello,

      Interest for housing loan can be claimed only after complete construction of the house property. Pre Construction/Acquisition period starts from the date of borrowing and ends on the last day of preceding Financial Year in which the construction is completed. The interest for pre construction period shall be allowed in 5 equal installment beginning from the financial year in which house property is completed.

  116. Ashutosh Kumar SInfh

    Hi,

    I took a loan in year Sep 2012 and got posession in Nov 2015. I have few questions about Home loan amount i can claim :
    1) Though I have the possession letter from builder , but registry of flat is still pending. can i claim the Home loan exemption in this case ?
    2) I paid the EMI (interest portion) till the full disbursal of loan in April 2015. It is a self-occupied property. How much amount can i claim in total? Assuming i paid 30K intrest per month from Sep 2012 to Nov 2015. How much can i claim this year ? FOr the 5 Equal part
    3) Since i moved to this house only in Nov 2015, this year can i claim both HRA and Home loan part.

    Thanks,
    Ashutosh Kumar Singh

    • Rohit Agarwal

      Hello,

      Please find my response below:-

      1) Yes, you can claim the exemption even if the registry is pending in your name.
      2) You can claim interest from Sep 2012 – March 2015 in 5 equal installments beginning from FY 2015-16. Assuming Rs 30,000 interest per month for 31 month amounts to Rs 9,30,000. You can claim deduction of Rs 1,86,000 (Rs 9,30,000/5) beginning from FY 2015-16. However the maximum combined limit of deduction is Rs 2,00,000 under section 24b for pre construction interest and current year interest.
      3) Yes, you can claim HRA deduction for rented period.

  117. sanjeev kumar

    Hi Rohit,

    Thanks for your helpful replies to all the queries raised above.

    I was looking for a reply to the question: what happens to the deduction on account of payment of interest on the housing loan in case the the loan is taken in Jan, 2005 and possession of the flat taken in March, 2010 (delay due to completion of the flat by the builder).

    Most of the websites, I searched, say that one would get deduction of Rs 30,000/- only if the possession of the flat is taken after three years of the end of the financial year in which the loan was taken. However, I was relieved when I read here that:

    “The limit of Rs 2,00,000/Rs 30,000 is applicable only in case of SOP. In case of let out, there is no limit on interest amount as well as construction period.”

    The above implies that in case the property is let out one does not become ineligible in case the construction period is more than three years. Moreover, the limit of Rs 2,00,000/- is also not applicable.

    Could you please quote the exact section / para etc. so that I can show it to my office and get the required deduction.

    Thanks,
    Sanjeev

    • Rohit Agarwal

      Hello,

      Yes, construction period condition is not applicable in case of let out property. Here are the relevant section of the Income Tax Act, 1961

      Section 24b
      where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

      Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

      Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed [within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed two lakh rupees.( one lakh fifty thousand for A.Y 2014-15 and before)

      Section 23(2)
      Where the property consists of-
      (a) a house or part of a house in the occupation of the owner for the purposes of his own residence,-
      (b) more than one house in the occupation of the owner for the purposes of his own residence, the provisions of clause (a) shall apply only in respect of one of such houses, which the assessee may, at his option, specify in this behalf;
      (c) more than one house and such houses are in the occupation of the owner for the purposes of his own residence, the annual value of the house or houses, other than the house in respect of which the assessee has exercised an option under clause (b), shall be determined under sub- section (1) as if such house or houses had been let. Explanation.- Where any such residential unit as is referred to in the second proviso to sub- section (1) is in the occupation of the owner for the purposes of his own residence, nothing contained in that proviso shall apply in computing the annual value of that residential unit.]

      You can read complete Section 23 from here.

      • sanjeev kumar

        Thanks for your prompt response. As I could understand that in the case of let out property Section 24 states clearly as given below:

        Deductions from income from house property.
        24. “Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—
        (a) a sum equal to thirty per cent of the annual value;
        (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:”

        Rest of the provisions / exceptions which restrict the deduction to Rs 2 lakh and make construction to be completed within three years of taking loan binding are exclusively for self occupied property.

        I hope I have understood it correctly. Please correct me if I am wrong.

        Thanks and regards,

        Sanjeev

  118. Dear Sir,

    Based on the comments : Deduction shall be allowed irrespective of the nature of loan whether it is housing loan or personal loan from any person/institution.

    I need some clarification as below.

    I am staying in Chennai on rent house and I have renovated my house in my native area by personal loan on June 2015 and my parents are staying in this house and I have paid the interest amount nearly Rs 70,000.
    My question:
    1. For 2015-16 – TDS, shall I claim the paid interest amount for personal loan?
    2. As well as shall I claim the HRA for my rented house in Chennai?

    If yes, how can I declare the amount and which section?

    Please advise me, Thanks in advance.

    • Rohit Agarwal

      Hello,

      Please find my response below:-

      1) Yes, you can claim that amount subject to the limit of Rs 30,000 which is applicable in case of Renovation.

      2) Yes, HRA and deduction u/s 24b can be claimed simultaneously.

      In case of declaration, submit the proof of interest payment and rent. In case of return filling you need to submit document at that movement. It will be required at the time of scrutiny, if demanded by Assessing Officer.

  119. vinod muralidharan

    Hi

    I am staying in thane on rent . I had purchased a house in the same area. I took loan in Dec 2012. The house was under construction from October 2009 and was delivered to me on July 2015. Since I am doing interiors , which will be done by March 2016 and , since the other occupant have not come in I am moving in to my own flat only in April 2016. Till then I will stay in rented apartment in the same area.

    My question

    1. For FY 2015-16, Can I claim HRA for my rented apartment and also claim total interest paid as deduction? I undetsnad this is allowed only if there are genuine reasons like own house being far way or another city. In my case the fact that my house, though taken possession in July 2015 is having interior work, and also not being safe because there are not many other people in the apartment (only 5 out of 80 apartment are occupied till Dec 2015) , would it amount as valid reason for considering this as let out apartment and claiming full interest deduction?

    2. Pre construction interest. The loan was taken in Dec 2012 from ICICI and was shifted to SBI in May 2014. Though the house was under construction I opted to Pay EMI and not pre EMI with both this bank. Can the interest paid in FY 2012-13, FY 2013-14 and FY 2014-15 be considered as pre construction interest, though I paid EMI and not pre EMI, and claimed as deduction over next 5 years?

    3. The interest paid in FY 2015-16, the year in which I took possession , July 2015, can this be claimed as post construction interest deduction ?

    will be thankful for your advice

    • Rohit Agarwal

      Hello,

      Please find my comments below

      1) You can claim HRA as well as deduction u/s 24b. These two section are different and you can claim deduction simultaneously in both of them. There is no limit u/s 24b if the property is let out but in your case the property is Self Occupied Property. The maximum limit of the deduction in such case is Rs 2,00,000 and further it will be reduced to Rs 30,000 if the construction is not completed within 3 years from the end of the financial year in which capital is borrowed. I suggest you to show the house property as SOP from the FY 2015-16 so you can have limit of Rs 2,00,000 u/s 24b.

      2) The interest paid from Dec 2012 to March 2015 is pre construction interest and can you claim it in 5 equal installments beginning from FY 2015-16. The overall limit u/s 24b is Rs 2,00,000 including the current interest as well as pre construction interest.

      3) Yes, it will be post construction interest from 01/04/2015 and can be claimed in the same FY.

      Thanks

  120. Hi, I have a small question. If I paid total 150000 as intrest in FY 15-16, then how much I can claim in 24b? Only 150000 or full 200000 as intrested component is calculated as accrual basic.

    • Rohit Agarwal

      The deduction u/s 24b is allowed on accrual basis. If the total interest in the FY 15-16 is Rs 2,00,000 then Rs 2,00,000 can be claimed as deduction even only Rs 1,50,000 has been paid in that FY.

  121. Even though rent is not received but we deduct interest how much we can interest

    • The maximum limit is Rs 1,50,000 in case of Self Occupied House Property. If the house is not SOP then there is not limit of interest deduction u/s 24b.

  122. Under Sec 24B, is the interest component of the EMI, deducted from Total Taxable Income or deducted from the Tax Payable?

    • Rohit Agarwal

      The interest component is deductible from Taxable Income subject to the limit as specified in Section 24b.

  123. Hi Rohit
    Whether Interest is allowed U/s 24(B) on interest paid on loan from friend used for construction of house.

    • Hello Sumer,

      Yes, you can claim it u/s 24b subject to the maximum limit allowed under this section.

  124. I am getting possession of my first flat this month. I am going to let out it from January 2015 itself. I am staying in family house(with my brother) in same area. My office is 20KM from my flat and family home.
    So my doubts are.
    1. Is my property considered as SOP or LOP?
    2. If it is LOP, there will be no limit on housing loan interest deduction. Can I claim HRA also? (Showing rent aggreement with brother)
    Thanks,
    vikas

    • Rohit Agarwal

      Hello Vikas,

      Please find my answers below:-
      1. Is my property considered as SOP or LOP? -> As you are going to let out this property after possession so it shall be LOP. Property is considered deemed to be let out only when assess is having more than one house property and no income is generating from these houses. In this case all such houses (from which no income is derived) shall be considered as deemed to be let out except one which he can treat as SOP.
      2. If it is LOP, there will be no limit on housing loan interest deduction. Can I claim HRA also? (Showing rent aggreement with brother) -> Yes, on LOP there is no limit on deduction u/s 24b. Also, deduction u/s 24b and HRA are completely different and can be claimed simultaneously.

  125. Hello,

    I have taken a home lone on 2014 Jun, 21L.
    property is registration on my mother name(housewife/no income).
    EMI is paying from my salary bank account.

    how can I claim 80C and 24B?

    Loan Payment Details:
    Paid From 01-APR-15 to 31-MAR-16
    Total EMI Amount: 193797
    Principal Component: 27338
    Interest Component: 166459

    Please suggest me what can i do?

    • Rohit Agarwal

      Deduction u/s 24b and 80C is allowed to the owner of the house property only. As the registration in is the name of your mother, deduction shall be allowed to her only.

  126. Hi,

    I have bought an already built-in house which I will be acquiring it in 2016. I have bought this house through a personal loan in December 2015. Will I be able to claim the interest on the personal loan which I have bought for this purpose. If yes, Can you please let me know on how I can apply for the claims.

    • Rohit Agarwal

      Yes, you can claim interest under section 24b even it is a personal loan. You can claim interest only on that part of the personal loan which have been used in the acquisition of the house property. You can just show that interest amount u/s 24b at the time of filling ITR.

      • Does the personal loan statement obtained from the bank needs to have any quote that this personal loan has been issued for the purchase of property or renovation or repair ?

  127. Whether claiming interest u/s 24 & principle u/s 80C is dis-allowed while purchasing second hand property (not new one, but used by other owners earlier) ?

  128. Pls. confirm whether Interest u/s 24 and principle u/s 80c can be claimed as deduction on a lump sum payment (in addition to regular EMI amount) of housing loan. Because interest is allowed on accrual basis & principle on payment basis. Pls. explain in both situation one where some one purchases a second hand house property (i.e. ready to move property from earlier owner and now a new one) second if property is under construction can such extra payment of loan also be allowed under pre construction period interest?

    • Yes, any lump sum payment (or pre payment) made towards the housing loan will be counted towards the loan repayment under section 80C. Also, it does not matter whether the house is new or second hand.
      Interest is allowed u/s 24b and principal repayment is allowed u/s 80C. So if you made any repayment/pre payment then it shall be considered u/s 80C not under 24b but no deduction can be claimed u/s 80C for repayment of the house property if the house property is under construction.

      • Thanks for reply, pls. re confirm with reference to pre payment of loan as it includes both principle & interest amounts for below two cases-

        1. If construction already completed in earlier years Interest us 24b and principle us 80C both are allowed as deduction?
        2. If construction not completed then Interest us 24b and principle us 80C both are allowed as deduction?

        • Rohit Agarwal

          Please find my response below:-

          1. If construction already completed in earlier years Interest us 24b and principle us 80C both are allowed as deduction? -> Yes, both deductions are allowed. Please check the limit specified under this section in case of SOP or let out for deduction.
          2. If construction not completed then Interest us 24b and principle us 80C both are allowed as deduction? -> No, interest is allowed under 5 equal installment after the completion of the house property. Also, no deduction can be claimed u/s 80C for the principal repayment during the construction period.

  129. Hi Rohit,

    I am currently living in Mumbai on Rent. I had purchased a flat in Noida in July 2011 and in Mumbai in Oct 2015. I am currently living on Rent. I am getting possession of both the properties in Jan 2016. The Mumbai flat will be SOP and I will shift there in Feb 2016. The Noida flat will be let out and will be vacant in this FY.

    Now I have to declare pre-construction interest (including processing fee), interest paid in current FY for both the properties, principal paid in current FY for both the propertiers and HRA for period I was on rent.

    Can you please explain with an example for the calculations.
    The Noida property will be vacant for Feb and March, how I will calculate notional rent, municipal taxes and standard deduction of 30% for current FY?

  130. Hi,
    I have purchased a builtin flat with loan and getting possession in Jan-2016 1st /2nd week. My loan is approved from LICHF and my EMI will start from 10-Feb-2015.
    I will let this flat on Rent and still will stay on rented individual house due to my office distance.
    Can i claim HRA as well as rebate on loan principle and Interest paid ?
    So Can I claim rebate of Principle(96,000) and complete interest paid (4,60,000) from next fin year ?

    This year only Feb and Mar 2016 can be claimed ?

    • Rohit Agarwal

      Yes, you can claim HRA as well as deduction u/s 24b for interest and principal repayment u/s 80C. Yes, complete interest is allowed under section 24b (subject to SOP provision) and principal repayment u/s 80C subject to limit of Rs 1,50,000 in all the year (part of the FY 2015-16 as well as future years).

  131. ADITYA BANERJEE

    please clarify my following points
    1) we know that deduction of pre construction interest is allowable in 5 equal instalments commence from the beginning of the f.y of completion of HP.
    suppose our p.y 14-15 and a.y 15-16 and date of completion of HP is 31/10/10 .
    so we can claim deduction fOR 10-11, 11-12, 12-13, 13-14 and 14-15. My question is for computing lapse period which year should we consider our P.Y OR our A.Y? can we claim deduction for AY 2015-16 for above from income from HP?

    • Rohit Agarwal

      The year from which you can claim deduction for pre acquisition/construction period start from FY 2010-11 or AY 2011-12 and end on FY 14-15 or AY 15-16.

    • I am a bank employee and have taken a home loan under staff loan for rs 4250000/- o. 30-9-15.to purchase under construction flat likely to be completed by 2017.I got two years moratorium (no int. & principal to paid) period whether interest debited in the account can be claimed for deduction under sec 24v

      • Rohit Agarwal

        Hello Vipin,

        Deduction u/s 24b is available on accrual basis. So you can claim pre construction interest (even it is not paid) u/s 24 in five equal installment after the completing of the Pre construction period. Pre Construction/Acquisition period starts from the date of borrowing and ends on the last day of preceding Financial Year in which the construction is completed.

        I apologies for not replying to your previous comment. It was overseen by me. Let me know if you have any other queries.

  132. Hi,

    I am staying in Mumbai. I booked a flat in Noida in Jun 2010. I got first disbursement for my home loan from bank in March 2011. I paid pre-EMI to bank till Sep 2012. EMI started from Oct 2012. I got final disbursement from bank in Oct 2015. The possession and registration is expected in Jan 2016.

    1. When possession is said to be taken by me?
    2. How can I claim tax benefits for this property, since this is a let out property?
    3. Please explain how 3 years construction period is calculated. (from loan sanction, first disbursement or final disbursement date)?
    4. Can I claim pre-EMI as well as interest paid in EMI’s in 5 equal parts? From when I can claim it?
    5. This property will be let out and vacant for period from Feb 2016 to Mar 2016 (after possession). How that period will be treated as.

    Regards,
    Amit Pandey

  133. Hi,
    I have borrowed a housin loan from HDFC Bank for the purchase of a flat @ chennai in 2009, further I obtained top up loan for furnishing the house, presently I am in higher interest rate, Now I wish to shift my loan to ICICI Bank who is ready to merge two loans into one loan and provide little bit higher amount for the renovation of my house which is affected by flood. My question is can I claim Income Tax benefit under section 24 towards the interest for the entire loan from ICICI.

    • Rohit Agarwal

      Hello Hamil,
      The total limit of deduction u/s 24b is Rs 2,00,000 (including the limit of Rs 30,000 for repair/renewal) in case of SOP. Yes, you can claim deduction under this section on the entire loan however I suggest you to calculate the interest individually on the new interest rate on the loan amount of acquisition as well as repair/renewal and apply limit of Rs 1,70,000 for acquisition and Rs 30,000 for repair.

  134. For earlier years I wrote I will get benefit for principal as well….please ignore that….ideally I should get rebate for only interest paid…before possession

  135. Hello,
    I had taken loan in 2013 for apartment and have been paying full EMI since then.
    I have taken possession of house from 1st December 2015 and staying there.
    I have not taken any tax benefit till now.
    Please confirm if
    1.I will get tax benefit for loan principal from Nov 13 to Dec 15 in 5 installments.
    2.I will get tax benefit for loan interest from Nov 13 to Dec 15 in 5 installments.
    3.I will get tax benefit upto 2 lakh for interest and 1.5 lac for principal for FY 2015-2016.
    4.Can I claim HRA as well if I stayed in rented house from 1 april 2015 to 1 dec 2015.
    Please confirm

    • Rohit Agarwal

      Hello,
      Please find my answer below:-
      1.I will get tax benefit for loan principal from Nov 13 to Dec 15 in 5 installments. -> Only interest in allowed u/s 24b for pre acquisition period not principal repayment.
      2.I will get tax benefit for loan interest from Nov 13 to Dec 15 in 5 installments. -> The amount of interest paid from Nov 13 to Mar 15 will be consider as pre acquisition interest and it will be allowed in 5 equal instalments beginning from FY 2015-16.
      3.I will get tax benefit upto 2 lakh for interest and 1.5 lac for principal for FY 2015-2016. -> Yes, the limit of Rs 2,00,000 shall include interest for the FY 2015-16 as well as pre acquistion interest instalment.
      4.Can I claim HRA as well if I stayed in rented house from 1 april 2015 to 1 dec 2015. -> Yes, you can claim HRA as well. For more information please check this link.

  136. Prabhu Raghunathan

    Sorry, in the last post I forgot to mention that my payments to builder from the loan commenced in June 2012. Apologies for missing this information.

  137. Prabhu Raghunathan

    Hi Prateek,

    Would need your help on this one. I booked a flat in May 2011 and the flat is due to be completed in Feb 2016. I paid the booking amount in May 2011 and have since been paying the interest on the disbursed amount since then – current disbursed amount is about 85% of the loan amount with last payment done to builder in Sept 2014. The questions I have are:
    a. The interest before possession can be claimed in 5 equal amounts each year starting from financial year ending 2015 or 2016?
    b. Is the limit for claiming this 200,000 or 30,000 in this instance under section 24b?

    Kindly assist. Regards.

    • Prateek Agarwal

      Hi Prabhu

      a. If construction will be completed by 31st March, 2016 then interest can be claimed from financial year 2015-2016. In this case interest for period upto 31st March, 2015 is pre construction interest. Interest from 1st April 2015 to the date of possession is not pre construction period interest.
      b. limit is rs. 2,00,000 because you are using the loan amount for purchasing of flat and not for renewal, reconstruction.
      The date of payment to builder is irrelevant in determining the time or amount of deduction.

      • Prabhu Raghunathan

        Thanks Prateek – appreciate your response!

        So from this can I infer that:

        a. the interest payments till end March 2015 needs to be claimed in equal amounts from financial year 2015-206 under Sec 24b
        b. the interest payments from April 2015 are to be claimed under 150k limit of 80c, 80ccc and 80ccd in FY2015-16

        This is my last question, thanks for your response in advance, it is very helpful!

        • Hello Prabhu,

          Yes, the pre acquisition interest can be claimed in 5 equal instalments starting from 2015-16. Also, the interest from April 2015 should be claimed under the same section i.e. 24b. The overall limit of deduction under section 24b is Rs 2,00,000 (including pre acquisition instalment).

          FYI – The principal repayment can be claimed u/s 80C subject to a limit of Rs 1,50,000.

          Let me know if you still have any confusion.

          • Prabhu Raghunathan

            Fantastic Rohit – thanks for your clear and prompt response!

          • Rohit Agarwal

            Pleasure is all mine!

          • Hi Prateek,

            I observe, in the present case of Raghu, the possession is after 3 years of borrowing of loan. Will the facility of Rs 2 lacs deduction be applicable here?

          • Rohit Agarwal

            Hello Ravindra,

            The limit of Rs 2,00,000/Rs 30,000 is applicable only in case of SOP. In case of let out, there is no limit on interest amount as well as construction period.

            Thanks for asking this as I have not mentioned it in my reply to Prabhu.

  138. Manpreet Singh

    I took a home loan in June 2015 and the construction of the house is complete in November 2015. My installment will start from Dec 2015. How can I get rebate for the year 2015-16 and 2016-17 under which section. considering the point that I am a government employee and I have not intimated my department about the loan??

    • Rohit Agarwal

      As the construction is completed before the end of the financial year i.e. 31/03/2016 so there will be no pre construction interest. The complete interest from June 2015 till March 2016 will be allowed in the same financial year 2015-16 under section 24b subject to maximum limit of Rs 200,000 in case of Self Occupied Property (SOP) and same goes for the financial year 2016-17. Also, the principal repayment on the loan will be allowed as a deduction under section 80C subject to maximum limit of Rs 1,50,000.
      Intimation to the Government is not mandatory for claiming deduction under section 24b as well as 80C. However, I suggest you to intimate your department to reduce the TDS liability from Salary otherwise you can claim TDS refund at the time of filling ITR by showing above mentioned deduction.

  139. Hii,

    What if loan is name of assesse, but registry is in the name of his mother. whether the assesse can claim the deduction?

    • Rohit Agarwal

      No. Assess cannot claim any deduction as he is not the owner of the property. The deduction under section 24b is only allowed to the owner of such property.

  140. Shilajit Bagchi

    The Joint owners, who are also co-borrowers of a self occupied house property can claim deduction on Interest on Home Loan up to Rs. 2 Lacs EACH.
    IS IT CORRECT?

    • Prateek Agarwal

      Yes, it is correct. If a person is both co-owner and co-borrower then he can claim deduction upto the specified limit. The deduction is calculated as per the percentage holding in the loan.

  141. I have taken housing loan for which I am taking rebate. Again I have taken home equity loan of Rs 30 lakh on the same house. Can I avail tax benefits on this loan also.

    • Prateek Agarwal

      Surely you can take deduction for more than one loan.

      • This is top up loan taken as personal loan without any reason .Please explain how and under which section can I avail tax rebate .

        • Prateek Agarwal

          If this is personal loan then deduction is not allowed under section 24b nor under section 80d.

  142. HI

    We had purchased a house on April 2011. We took loan from Bank and we have continuously been paying EMI on this. We are expected to get the possession by March 2017. We will be giving this house on rent. Will we be able to claim deduction on the complete interest paid during this time after the possession in next five years ?

    • Prateek Agarwal

      Yes, such interest is allowed as deduction without any limit if you will give the property on rent.

  143. HI Prateek,

    I plan to take loan from my friend for buying a house. He will be lending me from his company. While i wont be able to claim tax benefit on principal. Will i be able to take benefit on interest payments? I plan to let out this property and claim loss on house property.

    • Prateek Agarwal

      If that company gives you the interest and repayment receipts than you can claim such interest.
      Such transaction should be bonafide to claim deduction.

  144. Arnab Banerjee

    Hi,
    I have taken a house loan in Oct’12. I am expecting the possession of the house in April 2016. I am working staying in a different state that that of my property. Can I claim 100% interest paid on house loan starting next FY? and also the interest paid till now/5?

    Regards

    • Prateek Agarwal

      Yes, you can definitely claim interest from next financial year i.e 2016-17 along with interest for pre-construction period.

  145. Hello,
    I have taken an Housing Loan to purchase House 4 years Back. I have given this house of Rent and earning Income. I am calculating Income and Showing Interest and Tax as Expenses. I am claiming Excess Interest paid as Loss from House Property. Recently, I have taken an additional Loan on the same property for Repaid and Renovation of the House. I would like to know whether I can claim this Interest from Additional Loan apart from Loss on House Property.

    Please advise.

    Regards

    Balaji

    • Prateek Agarwal

      Hello

      yes, you can also claim such interest because there is no limit of deduction for interest on loan taken for rented property.

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