Ownership is a primary condition, precedent for claiming deduction towards interest on House Loan U/s 24(b) & towards Principal Amount of Repayment of House Loan U/s 80C of the Income Tax Act-1961. If both the husband & wife are the co-owners in the house property, deduction towards interest for housing loan taken for purchase or construction of the house property, up to a maximum of Rs. 1.50 Lacs, can be claimed by each one of them. Similarly, deduction U/s 80C towards principal repayment, up to a maximum of Rs. 1 Lacs, can be claimed by each one of them.
Deduction towards Additional Housing Loan for extension of House:
In respect of additional Housing Loan (new loan) to be availed by you for extension of the existing house property, the admissibility of deduction would be as under:
Interest Deduction U/s 24(b):
Interest related to the loan taken for addition to the existing house property is admissible as deduction subject to the overall max cap of Rs. 1.50 Lacs u/s 24(b). But the interest on loan taken for additional Housing as renovation is admissible as deduction subject to a maximum cap of Rs. 30,000/- only.
Deduction U/s 80C towards Principal repayment:
No deduction u/s 80C is available in respect of loan taken for addition, alternation or renovation or repairs of the house property.
Deduction towards Additional Housing Loan for extension of House:
In respect of additional Housing Loan (new loan) to be availed by you for extension of the existing house property, the admissibility of deduction would be as under:
Interest Deduction U/s 24(b):
Interest related to the loan taken for addition to the existing house property is admissible as deduction subject to the overall max cap of Rs. 1.50 Lacs u/s 24(b). But the interest on loan taken for additional Housing as renovation is admissible as deduction subject to a maximum cap of Rs. 30,000/- only.
Deduction U/s 80C towards Principal repayment:
No deduction u/s 80C is available in respect of loan taken for addition, alternation or renovation or repairs of the house property.
0 comments:
Post a Comment