Deductions on Housing Loan
Deduction under section 24(b), interest on housing loan (for tax exemption)
There is an exemption for interest on housing loan.
ü If the loan was taken before Apr 1, 1999 exemption is limited to Rs.30,000/- per year.
ü If the loan was taken after Apr 1, 1999 exemption is limited to Rs.1,50,000/- per year if the house is self-occupied.
ü If the house is rented out there is no limit.
This exemption is available on accrual basis, which means if interest has accrued, you can claim exemption, irrespective of whether you’ve paid it or not.
ü If the loan is taken jointly by two individuals both can claim this exemption
There is an exemption for housing loan principal repayment Under (Sec80C)
