Applicability of Interest deduction

[Rahul Bagaria]

Under the IT Act, deduction of pre possession EMI interest can be claimed in 5 equal instalments for self occupied property.However is the same law applicable to self occupied property, if so then is it restricted to Rs.1,50,000

AI Summary

Pre-possession EMI interest deduction for self-occupied properties clarified: Claim in five installments with Rs. 1.5 lakh limit. A query was raised regarding the deduction of pre-possession EMI interest under the Income Tax Act for self-occupied properties. The discussion clarified that the interest deduction can be claimed in five equal installments. For self-occupied properties, the deduction limit is Rs. 1.5 lakhs, while there is no such ceiling for let-out properties. The responses from participants, including two chartered accountants, confirmed the applicability of these provisions, emphasizing the restriction applies only to self-occupied properties.