section 24

  • Aug
  • 02

Double Benefit on Taxes on Housing Loan

The Government is encouraging Individuals to invest in House Property and providing greater benefits to them by giving tax relaxation. If you are planning to buy a new house then it would be wise to go for housing loan even as it helps you to save tax on income. Payment of housing loan gives you […]

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  • Jul
  • 11

Budget 2014- Home Loan Interest Exemption Limit on SOP increased to Rs. 2 Lakh

CA Sandeep Kanoi Deduction from income from house property The existing provisions contained in section 24 of the Act provide that income chargeable under the head “Income from house property” shall be computed after making certain deductions. Clause (b) of the said section provides that where the property is acquired with borrowed capital, the amount […]

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  • May
  • 29

6 Expectations of Middle Class from Budget 2014

CA Sandeep Kanoi Union Finance Minister Arun Jaitley is expected to present his budget either in last week of June 2014 or in First week of July 2014. With Budget around the corner the Taxpayers are very enthused about expected tax reliefs from Mr. Arun Jaitley and started thinking that good days are around the […]

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  • Feb
  • 26

Income Tax Benefits from House Property

CA Sandeep Kanoi Buying a House is nowadays is not easy considering the multifold hikes in property price in last 10 Years. It becomes almost impossible for middle and lower class to buy an house and those buying the house also finds it difficult to buy the same from their own saving without obtaining a […]

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  • Feb
  • 07

Analysis on cross connection between Sec. 80EE and Sec. 24(b)

Finance Act, 2013 with a view to provide additional benefit towards interest paid by assessee against housing loan inserted a new section of deduction i.e Section 80EE w.e.f. 01.04.2014. i.e. Deduction in respect of interest on loan taken for residential house property. 80EE. (1) In computing the total income of an assessee, being an individual, there […]

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  • Jan
  • 26

FAQ on Housing Loan & Income tax benefit

First Equated monthly instalment (EMI) amount is to be divided into the principal and interest components. The repayment of principal amount of the loan can be claimed as a deduction under section 80C up to a maximum amount of Rs.1 lakh. The repayment of the interest portion of the EMI is also allowed as a deduction under section 24 under the head “income from house property” upto Rs.1,50,000/- for self occupied property and full amount in case of let-out property.

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  • Dec
  • 16

Buy home to reduce Income Tax burden

As the financial year comes to an end, it is time to start planning your tax saving strategies. A house can also be used to reduce the tax liability to a certain extent. Under Section 24 of the Income Tax Act, interest paid up to Rs 1.5 lakhs per annum on a home loan can be set-off from salary or business income, for a self-occupied property.

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  • May
  • 14

Loan Prepayment charges allowed as deduction from house property income

The assessee claimed deduction of Rs. 11.05 crore u/s 24(b) of the Act. The Assessing Officer did not allow deduction of Rs. 1.56 crore paid as prepayment charges for the closure of the loan account which was taken for acquisition of property fetching the extant house property income. Under these circumstances the question arises as […]

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  • May
  • 12

Expense by tenant on house property repairs cannot be included in ALV

In the present set of facts, we have noted that the AO had considered the impugned repair expenditure as annual rent in the hands of the assessee which was without any basis. As far as the assessee was concerned, the deduction @ 30% is like a standard deduction as prescribed u/s.24(a) of IT Act, not necessarily incurred towards repairs of the house property as held in the case of JB Patel & Co. 118 ITD 556.

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  • Feb
  • 28

S. 80EE Additional Deduction of Interest upto Rs.1 Lakh on Home Loan for First Home Buyer

Under the existing provisions of section 24 of the Income-tax Act, income chargeable under the head ‘Income from House Property’ is computed after making the deductions specified therein. The deductions specified under the aforesaid section are as under:-

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