Loan for purchasing property
sunil rajpal
(Querist) 19 February 2012
This query is : Resolved
Kindly explian IT Law relating to deduction to be claimed for interest on loan and paying principal amount of loan for purchasing built up property.
A V Vishal
(Expert) 19 February 2012
You will be eligible to claim both the interest and principal components of your repayment during the year. Interest can be claimed as a deduction under Section 24. You can claim up to Rs. 150,000 or the actual interest repaid whichever is lower. (You can claim this interest only when you are in possession of the house). Principal can be claimed up to the maximum of Rs.100,000 under Section 80C. This is subject to the maximum level of Rs 100,000 across all 80C investments.
