Min. holding period of 5 years for residential house property is necessary for section 80C deduction and if transferred before completion of 5 years, all deductions claimed towards repayment of loan in earlier years is treated as income in the year of the transfer. Please advise same thing is applicable for deduction claimed towards interest on borrowed capital for house property (Sec 24).
Thanking in anticipation....
Clarification Sought on Minimum Holding Period for Interest Deductions Under Section 24 of Income Tax Act A query was raised regarding the applicability of a minimum holding period for residential house property under Section 24 of the Income Tax Act, which pertains to deductions for interest on borrowed capital. The inquirer noted that under Section 80C, a five-year holding period is required for deductions related to loan repayment, and if the property is transferred before this period, previous deductions are reversed and treated as income. The question seeks clarification on whether a similar rule applies to interest deductions under Section 24. (AI Summary)
TaxTMI 
TaxTMI 
