{"id":4776,"date":"2022-08-05T10:52:21","date_gmt":"2022-08-05T10:52:21","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=4776"},"modified":"2023-08-23T13:43:07","modified_gmt":"2023-08-23T13:43:07","slug":"all-about-the-interest-on-home-loan-is-allowed-u-s-24b","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/all-about-the-interest-on-home-loan-is-allowed-u-s-24b\/","title":{"rendered":"All about the Interest on home loan is allowed U\/s 24b"},"content":{"rendered":"<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4777\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/interest-on-housing-loan.jpg\" alt=\"interest on housing loan allowable \" width=\"812\" height=\"517\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/interest-on-housing-loan.jpg 550w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/interest-on-housing-loan-300x191.jpg 300w\" sizes=\"(max-width: 812px) 100vw, 812px\" \/><\/h3>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dc660fddcc0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dc660fddcc0\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-the-interest-on-home-loan-is-allowed-u-s-24b\/#Who_can_claim_deduction_Us_24B_of_the_Income_Tax_Act\" title=\"Who can claim deduction U\/s 24B of the Income Tax Act? \">Who can claim deduction U\/s 24B of the Income Tax Act? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-the-interest-on-home-loan-is-allowed-u-s-24b\/#What_is_exclusionsInclusions_in_Interest_Us_24B_of_the_Income_Tax_Act\" title=\"What is exclusions\/Inclusions in Interest U\/s 24B of the Income Tax Act?\">What is exclusions\/Inclusions in Interest U\/s 24B of the Income Tax Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-the-interest-on-home-loan-is-allowed-u-s-24b\/#What_is_maximum_Deduction_Limit_Us_24B_of_the_Income_Tax_Act\" title=\"What is maximum Deduction Limit U\/s 24B of the Income Tax Act? \">What is maximum Deduction Limit U\/s 24B of the Income Tax Act? <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-the-interest-on-home-loan-is-allowed-u-s-24b\/#Whether_the_interest_on_capital_of_partners_can_be_allowed_as_a_deduction_US_24b\" title=\"Whether the interest on capital of partners can be allowed as a deduction U\/S 24(b)?\">Whether the interest on capital of partners can be allowed as a deduction U\/S 24(b)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-the-interest-on-home-loan-is-allowed-u-s-24b\/#Comparison_between_Section_80C_Section_24B\" title=\"Comparison between Section 80C &amp; Section 24B\">Comparison between Section 80C &amp; Section 24B<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.caindelhiindia.com\/blog\/all-about-the-interest-on-home-loan-is-allowed-u-s-24b\/#Position_of_House_rent_allowance_with_Interest_Deduction\" title=\"Position of House rent allowance with Interest Deduction\">Position of House rent allowance with Interest Deduction<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Who_can_claim_deduction_Us_24B_of_the_Income_Tax_Act\"><\/span><span style=\"color: #000080;\"><strong>Who can claim deduction U\/s 24B of the Income Tax Act? <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Income tax deduction can be claimed for 2 or more housing loans. The deduction U\/s 24B can also be claimed for 2 or more houses. For claiming deduction U\/s 24B,\u00a0Person must be the owner of the house property &amp; also loan should be in his claimant name.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_exclusionsInclusions_in_Interest_Us_24B_of_the_Income_Tax_Act\"><\/span><span style=\"color: #000080;\"><strong>What is exclusions\/Inclusions in Interest U\/s 24B of the Income Tax Act?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The said Interest will includes prepayment charges, service fees, brokerage, commission etc.<\/li>\n<li>penalty on unpaid interest\/ Interest shall not be allowed as deduction.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"What_is_maximum_Deduction_Limit_Us_24B_of_the_Income_Tax_Act\"><\/span><strong><span style=\"color: #000080;\">What is maximum Deduction Limit U\/s 24B of the Income Tax Act?<\/span> <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The maximum deduction limit on the interest of a loan is INR 2,00,000\/- It is applicable for both self-occupied housing property or rental house property.\u00a0Individuals owning 2 self-occupied housing properties\u00a0can claim a deduction on the interest U\/s 24B of the Income Tax Act.<\/li>\n<li>if a person owns two or more house property, then the total deduction for that person remains the same.\n<ul>\n<li>Self-occupied House (SOP) \u2013 INR 2,00,000\/-<\/li>\n<li>In deemed to be Let Out\/ let out property \u2013 INR 2,00,000\/-<\/li>\n<\/ul>\n<\/li>\n<li>This is to be noted that income deduction u\/s 24b Limits of deduction are applicable assessee wise &amp; it is not property wise.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-4779\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/All-about-the-Interest-on-home-loan-is-allowed-under-section-24b.jpg\" alt=\"All about the Interest on home loan is allowed under section 24b\" width=\"779\" height=\"267\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/All-about-the-Interest-on-home-loan-is-allowed-under-section-24b.jpg 531w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/All-about-the-Interest-on-home-loan-is-allowed-under-section-24b-300x103.jpg 300w\" sizes=\"(max-width: 779px) 100vw, 779px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Whether_the_interest_on_capital_of_partners_can_be_allowed_as_a_deduction_US_24b\"><\/span><span style=\"color: #000080;\"><strong>Whether the interest on capital of partners can be allowed as a deduction U\/S 24(b)?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Home loan interest may be deducted from taxable income under Section 24(b) of the Income Tax Act. Such a loan should be obtained for the acquisition, building, repair, or reconstruction of real estate for homes.<\/li>\n<li>According to decision of CIT v. Sane &amp; Doshi Enterprises [ITA NO. 1477 OF 2009], interest paid on partners&#8217; capital used to build property from which rental income is derived is allowable as a deduction.<\/li>\n<li>If all of the interest paid on the partners&#8217; capital was related to the property that the assessee rented out but that was built or bought with the partners&#8217; contributions, the deduction for interest on partners&#8217; capital may be allowed as per Under section 24(b) under income tax Act.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6193\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Home-Loan-Intt.jpg\" alt=\"Home Loan Intt\" width=\"1080\" height=\"935\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Home-Loan-Intt.jpg 1080w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Home-Loan-Intt-300x260.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Home-Loan-Intt-1024x887.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Home-Loan-Intt-768x665.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Home-Loan-Intt-800x693.jpg 800w\" sizes=\"(max-width: 1080px) 100vw, 1080px\" \/><\/p>\n<p><strong><span style=\"color: #000080;\">Other matter<\/span> <\/strong><\/p>\n<ul>\n<li>In case the partnership firm has constructed the godown from borrowed capital on which the interest has been paid to partners like outside parties, So\u00a0it will be allowable deduction Under section 24(b) under income tax act<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Comparison_between_Section_80C_Section_24B\"><\/span><span style=\"color: #000080;\"><strong>Comparison between Section 80C &amp; Section 24B<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Interest on home loan is allowed U\/s 24b while principal on home loan is allowed U\/s 80C. Difference between 80C and section 24b is mention below:-<\/li>\n<\/ul>\n<table style=\"height: 1021px;\" width=\"810\">\n<tbody>\n<tr>\n<td width=\"184\">\u00a0<strong>Particulars about the Deduction <\/strong><\/td>\n<td width=\"208\"><strong>Section 80C<\/strong><\/td>\n<td width=\"219\"><strong>Section 24b<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"184\">Income Tax Deduction allowed only for<\/td>\n<td width=\"208\">Principal only<\/td>\n<td width=\"219\">\u00a0Interest only<\/td>\n<\/tr>\n<tr>\n<td width=\"184\">Tax Deduction Basis<\/td>\n<td width=\"208\">Cash Basis<\/td>\n<td width=\"219\">Accrual Basis<\/td>\n<\/tr>\n<tr>\n<td width=\"184\">Deduction Amount<\/td>\n<td width=\"208\">INR 1,50,000\u00a0 (From AY 2015-16)<\/td>\n<td width=\"219\">Self-occupied property: INR 2,00,000 (From AY 2015-16)<br \/>\nOther than Self-occupied property: No limit<\/td>\n<\/tr>\n<tr>\n<td width=\"184\">Loan Purpose<\/td>\n<td width=\"208\">Construction of a new House Property\/ Purchase of a new House Property<\/td>\n<td width=\"219\">Construction\/ \u00a0Purchase\/ \u00a0Repair\/ Renewal\/ Reconstruction of a Residential House Property.<\/td>\n<\/tr>\n<tr>\n<td width=\"184\">Eligibility for claiming Tax deduction<\/td>\n<td width=\"208\">NIL<\/td>\n<td width=\"219\">\u00a0Construction\/ Purchase should be completed within Three years<\/td>\n<\/tr>\n<tr>\n<td width=\"184\">Restriction on Sale of Property<\/td>\n<td width=\"208\">Tax Deduction claimed would be reversed if Property sold within 5 years from the end of financial year in which such property is acquired by him.<\/td>\n<td width=\"219\">\u00a0NIL<\/td>\n<\/tr>\n<tr>\n<td width=\"184\">Deduction during construction period<\/td>\n<td width=\"208\">No deduction is available for the principal repayment during the construction\/acquisition period.<\/td>\n<td width=\"219\">Interest paid during the construction\/acquisition period shall be allowed in 5 equal instalments from the last day of preceding Financial Year in which the construction is completed<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-4778\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Section-80EEA-24b-80EE.jpg\" alt=\"Section24b-80EE- -80EEA\" width=\"828\" height=\"235\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Section-80EEA-24b-80EE.jpg 828w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Section-80EEA-24b-80EE-300x85.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Section-80EEA-24b-80EE-768x218.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2022\/08\/Section-80EEA-24b-80EE-800x227.jpg 800w\" sizes=\"(max-width: 828px) 100vw, 828px\" \/><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Position_of_House_rent_allowance_with_Interest_Deduction\"><\/span><span style=\"color: #000080;\">Position of House rent allowance with Interest Deduction<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>House rent allowance U\/s 10(13A) &amp; interest deduction can be availed simultaneously even if house property is in same city in which you resides on rented property.<\/li>\n<li>Income tax form 12BB is to be submitted with employer, if you want your employer to take deduction under this section into consideration &amp; thus deduct lower Tax deduction at source<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Who can claim deduction U\/s 24B of the Income Tax Act? Income tax deduction can be claimed for 2 or more housing loans. The deduction U\/s 24B can also be claimed for 2 or more houses. For claiming deduction U\/s 24B,\u00a0Person must be the owner of the house property &amp; also loan should be in &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[142],"tags":[932],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4776"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=4776"}],"version-history":[{"count":4,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4776\/revisions"}],"predecessor-version":[{"id":6195,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/4776\/revisions\/6195"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=4776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=4776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=4776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}