DEDUCTION OF INTEREST ON HOUSING LOAN

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....EDUCTION OF INTEREST ON HOUSING LOAN<br> Query (Issue) Started By: - S.C. WADHWA Dated:- 5-9-2014 Last Reply Date:- 23-9-2014 Income Tax<br>Got 1 Reply<br>Income Tax<br>Mr. A gave &#8377; 5 lacs to a builder for purchase of flat in delhi and took a loan of &#8377; 10 lacs. Finance Co. gave &#8377; 10 lacs directly to builder for purchase of flat on behalf of Mr. A. Thus, total cost of flat purchas....

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....ed by r. A is &#8377; 10 lacs. The flat contruction was completed after three years i.e. three years after giving &#8377; 15 lacs. During these three years, builder paid interest to Finance Co. During the financial year 2012-13, Mr. A obtained possession of flat and paid interest of &#8377; 300000/-. Mr. A had now two flats one in delhi and 2nd in haryana. Query is How much deduction will be a....

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....vailable on account of interest and in which manner. Reply By MAHENDRABHAI DESAI: The Reply: Dear Mr. Wadhwa, Pl. read explanation for section 24 of Income Tax, where in it is mentioned that house should be completed within three years of taking loan, and interest for the period before taking possession shall be allowed in five equal installments, one in the year in which possession was obtaine....

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....d and rest for four succeeding year. You need certificate from finance co. stating interest paid for each year. One flat of your choice, with higher value will be treated as self occupied property, and second one if not used for business or give on rent, then notional rent will be added to income and from which you can claim deduction.<br> Discussion Forum - Knowledge Sharing ....