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Asked by namish on :Jul. 05, 2018

I raised a loan for reconstruction of my ho…

I raised a loan for reconstruction of my house. Interest on such loan during the last year wa…

I raised a loan for reconstruction of my house. Interest on such loan during the last year was sixty-five thousand. As loan was exclusively taken for reconstruction of the house, is it eligible for the deduction?

0

Jeeba Jul. 05, 2018

Your claim for the deduction shall be limited to thirty thousand.
This is because section 24 states that if the construction of house property is not completed within three years and if the loan is taken for the repair or renovation of a house then interest paid on loan shall be limited to thirty thousand.

Since you have taken a loan for the renovationction of house property, deduction shall be limited to thirty thousand.

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