Deductions for Interest on Housing Loan

             Particulars       Self Occupied Property

         Let Out Property

Deduction under the head "Income from House Property" 
Deduction up to Rs 2 lakhs
(Please refer Note: 1)
Entire interest allowed as deduction

Additional deduction if loan sanctioned in financial year 2016-17
(Please refer Note 2)
Additional deduction up to Rs 50,000
Additional deduction up to Rs 50,000

Note: 1      Deduction is subject to below conditions: 

Condition
Interest Limit (in Rs) 
Loan taken before 01 April 1999
 30,000
Amount borrowed between 01 April 1999 and 31 March 2015 and acquisition or construction completed within 3 years from end of financial year in which loan availed
 1.5 lakhs
Amount borrowed after 01 April 2015 and acquisition or construction completed within 5 years from end of financial year in which loan availed
 2 lakhs
Amount borrowed for repair, renewal, reconstruction
 30,000 

If condition of time period for completion of construction not satisfied, deduction restricted to Rs 30,000.

Note: 2    Additional deduction up to Rs 50,000 provided:

  • Loan is sanctioned between 01 April 2016 to 31 March 2017
  • Loan amount sanctioned is less than Rs 35 lakhs
  • House property value is less than Rs 50 lakhs
  • Loan taken from financial institution for acquisition of residential property
Benefit of deduction is extended till repayment of loan.

Disclaimer: The views / the analysis contained therein do not constitute a legal opinion and is not intended to be an advice. Readers of this document are advised to seek their own professional advice before taking any course of action or decision, based on this document.

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