Friends, whenever you want to take loan on existing house that called "Renovation Home Loan". The deduction of Interest and repayment of principal amount you will manage from your income. Therefore question arise that the deduction of interest and repayment of principal amount is allowable to exempt. For this the C.A. suggest that:
- a) Deduction of Interest: Interest deduction u/s. 24 is allowed in respect of the loan taken for repair/renovation of house property. However, in respect of such loan taken for self occupied house property, the maximum amount allowed is Rs. 30000/- only and not Rs. 150000/-
- b) Deduction of Principal Amount: No deduction is available towards the principal repayment of the loan taken for repairs/renovation of house property.
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