Compound Interest on Home Loan Not Allowable as Deduction under section 24!

compund interest

The home loan entitles a person so claim deduction of interest payable on the amount borrowed and utilized for the purpose of buying or constructing house. Section 24 of the Income Tax Act deals with the deduction of interest on borrowed capital. Now , when a person borrows home loan, generally , all such loan agreements keep a clause under which if the interest is not paid in … [Read more...]

Does Direct Tax Code 2010 allow Interest deduction from house property income?

Well interest is allowed without any limit in case house is let out. However, no interest is allowed to be deducted while computing the "income from house property" on a property which is not put to rent . The simple reason is that there is no computation of income from house property as the house was not let out.However , good news is that the interest to the extent of Rs … [Read more...]

Revised DTC deletes tax on notional rent , allows interest deduction.

Two of the most controversial change in taxation of rental income from house property by earlier Direct Tax Code were -proposal of tax @ 6 % of presumptive rent calculated at 6%  per annum of the ratable value fixed by the local authority and abolition of any interest deduction even from one house which is self occupied by a taxpayer.Revised DTC has abolished both these BAD … [Read more...]

Can HRA exemption, 80C deductions & Interest deduction be claimed together?

House rent allowance exemption and interest deduction including 80C deduction for payment of principal amount of loan is one of the most sought after query by readers of this blog. Therefore, when Mr Nag of Banglore asked “I have an independent home in B’lore(under bank loan) and I am staying in B’lore in rented house(3BHK). Can I claim Both HRA and Home loan interest Benefit … [Read more...]