“(2) Where the property consists of a house or part of a house which—
(a) is in the occupation of the owner for the purposes of his own residence; or
The interest is allowed u/s 24 of the I T Act which says
Income chargeable under the head Income from house property shall be computed after making the following deductions, namely:
(a) a sum equal to thirty per cent of the annual value;
(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:
Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :
Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed 67[within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees.”
About taxworry
I had constructed a house in a plot of land jointly owned by myself and my wife around 15 years back and I had availed housing loan and claimed income tax exemption for emi paid. The loan account was closed two years back. Now a new house is being constructed by us availing housing loan by my wife, in an another plot of land jointly owned by myself and my wife and we are shifting to the new house. We plan to rent out the old house. Can she claim exemption under income tax act for the amount of interest and principle amount being paid through emi ?
Awaiting your reply.
Thanks