DEDUCTIBILITY OF INTEREST U/S 24 (b) OF THE INCOME TAX ACT, 1961
antara singh
(Querist) 10 July 2011
This query is : Resolved
Assessee had taken a loan from HDFC regarding purchase of PLOT of LAND, during the FY 10-11. On that loan he had repaid principal and interest to HDFC. Plz advice whether the amount paid as principal qualifies for deduction u/s 80C and the amount paid as interest qualifies for deduction u/s 24(b). Plz state case law, if any.
CS. Antra Singh
A V Vishal
(Expert) 11 July 2011
No the amount of interest or principal doesnot qualify for deduction both u/s.24(b) or 80C
Amit Soni
(Expert) 12 July 2011
The deduction under these section is available only on residential house property not on plot or land.
soumitra basu
(Expert) 15 July 2011
Since the residential propety has not yet been completed, you shall not be eligible for interest on loan in the current assessment year. However, you may carry forward the same to be adjusted in future i.e. after complettion of construction in 5 equal instalement.
You are entitle to have the deduction under section 80C since there was no such restriction in this section.
