It is very important that you become aware of all aspects against the loan you have availed of. Most people do not know anything about the interest on self occupied property or on what criteria the limit of the deduction depends. Since I availed of a loan myself last year, I have been able to get several pieces of information related to it. Most people have the query- What is the maximum interest for self occupied property, so let me answer it here.
What is Section 24 B for self-occupied property?The Section 24 B of the Income Tax Act states that the maximum deduction limit on the interest of a laon is Rs 2,00,000. This rule is applicable for both rental and self-occupied housing property. People owing two self-occupied housing properties are eligible to claim a deduction on the interest. So the interest on self occupied house property is generally Rs 2 lakh.
But the limit of deduction will become Rs 30,000 if some criteria are not matched and those are-
The home loan must be availed for the purchase and construction of a property
The loan is availed after or on 1st April 1999
The purchase or construction of the proeprty is completed within 5 years from the end of the financial year when the loan was availed
An interest certificate available for the interest payable on the loan
Deduction on home loan interest cannot be claimed during the construction of the house. It can be claimed only after the construction is completed.
This is the interest on self occupied property that you can claim abiding by the rules.
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Read More:What is self occupied property?
How to claim deduction under Section 24?
What is section 24 of income tax act?
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What is the Maximum Interest for Self Occupied Property?
Jiya
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2023-05-25T09:39:49+00:00 2026-03-31T12:53:57+00:00Comment
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