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Interest 24(b) in case of self occupied Property

Self occupied Property What is the maximum amount of interest can be deducted under section 24 ( b) 200000 or 30000 as the case may be Or 2 lacs for construction or acquisition and if renovation, renewal, reconstruction, repair includes 30000 over and above that 2 lakh Can I get rupees 230000 as deduction under section 24 (b) if I have taken a loan for renovation reconstruction and also for purchasing house


Gayathri K V

Gayathri K V

CA Inter

5K+

31-Mar-21 19:45

24

Answers (4)

No. loan taken take is considered to determine 30,000 or 2,00,000..... the maximum interest deduction is Rs.2lacs


sudha reddy

sudha reddy

Moderator

01-Apr-21 16:37

No. loan taken take is considered to determine 30,000 or 2,00,000..... the maximum interest deduction is Rs.2lacs

While answering to this question (in step. 1 computation of income if these are self occupied property) For the second house property interest on capital borrowed is taken RS 41000 as production (Rs.11000 interest on borrowed capital towards purchase of such Property +and Rs. 7,89,000 interest on capital borrowed towards repair, renewal or reconstruction In answering this question 11,000 + 30000 is equal to 41000 is taken) So you tell me that only 30000 or 200000 as the case may be is taken but in this case 41000 taken. Why that happened?

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Gayathri K V

Gayathri K V

CA Inter

5K+

03-Apr-21 06:45

Will check and revert

First proviso to Sec 24(b) states self occupied property - Max Rs.30,000 Second proviso to Sec 24(b) states self occupied property, loan after 1/4/99 for purchase / construction - Max 2,00,000 Fourth proviso to Sec 24(b) states self occupied property, - deduction under first proviso + second proviso - Max 2,00,000 Sec 24(b) states - interest deduction if let out - No limit for deduction So in the illustration, if House 2 is considered self occupied - First proviso Rs.30,000 and Second proviso Rs.11,000 is considered


sudha reddy

sudha reddy

Moderator

06-Apr-21 12:59