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Ask The Tax Expert

Tax Deduction under Section 24(b) on Home Loan for Reconstruction/Renewal/Repair

Question: I have taking a 5 lakh loan for renovating my home which is in the joint name of my mother (my dependent) and me. Am I eligible for a tax rebate?

              
Answer: Benefit under section 80C for principal deduction of the housing loan EMI is not allowed, if the home loan is for the purpose of reconstruction, renewal or repair of house property. Tax benefit under section 80C is allowed only for acquiring or constructing a new home and is not for alteration of an existing house.

               

In contrast, deduction for Interest is allowed under section 24(b) even for a loan taken for the purpose of reconstruction, renewal or repair of existing house property but subject to the limit of Rs 30,000 in case of self-occupied house property. In case of let out house property, actual interest is allowed without any ceiling.

           

Warm Regards,

TaxYogi

Published Nov 02 2010




Comments

Comments

 

som pal said:

my wife and i had taken a homeloan of rupees twentylakhs from hdfc. now my question is who or both and how claim under section of section 24 (b ) in income tax can be claimed

dr sompal

5008 ,officers colony

agra

9760536500 (mob )

November 22, 2010 5:03 AM
 

santosh Jain said:

I have taken home loan  as co-applicnat with joint name ( wife) Rs. 500000/-. The house is registered on my wife*s name. Can I claim the House Building Advance rebete in myself income.

January 19, 2011 11:58 PM
 

sasi said:

my wife and i had taken a homeloan of rupees twentylakhs from hdfc. now my question is who or both and how claim under section of section 24 (b ) in income tax can be claimed

February 8, 2011 3:29 AM
 

MINNIE said:

THE HOUSE in my mothers(dependent) name can i renovate it and get tax exemption can i take a joint loan to split the tax benefits.I rented it out to students

June 20, 2011 12:08 AM

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