Deduction of interest on home loan under section 24.

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Deduction of interest on home loan under section 24.

I have taken a loan for construction from SBI for own staying purpose. During, 2016-17(FA), I have paid Rs.90,232/- as interest for the said year. Now, my question is whether I can claim the above entire interest amount as deduction from my gross salary under section 24(1) of income tax for 2017-18(AY)

Asked By: Anonymous 2 replies 1 helpful answers Last Updated: 5 months, 3 weeks ago
  • Anonymous

    I have taken a loan for construction from SBI for own staying purpose. During, 2016-17(FA), I have paid Rs.90,232/- as interest for the said year. Now, my question is whether I can claim the above entire interest amount as deduction from my gross salary under section 24(1) of income tax for 2017-18(AY)

  • Profile photo of Neha JoshiNeha Joshi
    Moderator

    Yes, you can claim the entire amount of Rs 90,232 as deduction under section 24 as deduction from your salary income. The total deduction that can be claimed by a taxpayer under section 24 is Rs 2 lakhs for a self-occupied property.

    To make sure you calculate your accurate tax liability and file your taxes right, please get in touch with the H&R Block, India at enquiry@hrblock.in.

     

    • Profile photo of PaddhuPaddhu
      Participant

      In my case, I have got a loan of 18L from bank and got 6L from my dad (total 24L). I would be paying an interest of around 1.4L to Bank and paying around Rs.40000/year to my dad as interest for the 6L he gave me. Can I show this Rs.40000 (overall, 1.4+0.4=1.8L) as interest paid to money borrowed from relative/friends, over the 1.4L which i’m paying to Bank, as Sec 24 has a limit of 2L/annum?

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