• Regarding Section 24B

Hi,
I had puchased an apartment on March 13, 2013 under scheme 80-20 (pre-emi). I took the home loan on March, 2013. But I got possesion on April 20, 2018. The property is owned by me and my spouse, home loan is also under both of our name. I have some doubts on sec 24B.

1. What is the maximum amount we can claim under sec 24B. We are self-ocuupying the house. We have paid about 12L as pre-emi interest, so can we claim all the amount?

2. My spouse in abroad now, so she will not claim any tax. Can I use her limit as well in addition to mine? If yes, any process for that?

Appreciate your help.
Asked 6 years ago in Income Tax

Dear Sir,

Maximum limit available is RS. 2 lacs in case of self occupied property. Pre-emi interest is available in 5 equal installments starting from F.y. 19-20 as you get the possession of property in April 18.

No you can't claim her share. If she has any income in India then it can be set off against that.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1030 Consultations

5.0 on 5.0

Hi

The Maximum amount that you can claim for a self occupied property is 2 lakhs. This includes the Pre-emi interest that can be claimed equally over a period of 5 years.

Ideally you should not be claiming her share. However, if you can prove that the EMI's have been paid out of your income and the total amount claimed by both of you together is within the prescribed limit as per law, it is possible to claim the entire amount by you. However this is not fool proof and may be subject to queries being raised from the IT department.

Hope that clarifies.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Hi,

1. The maximum limit of interest in case of self occupied property is INR 2 lacs. Pre-emi interest will be available to you in 5 equal installments starting from the year in which construction got completed (i.e. F.Y. 19-20)

2. No you can't claim her share. Though, she can show the loss in her return of income and carry forward the loss.

Please feel free to call/ revert in in case you need more clarity.

Thanks and regards

Abhishek Dugar

CA CS B.Com

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi

1. The limit is 2 lacs annually per individual. The pre emi interest. The pre construction interest shall be allowed as deduction in 5 equal installments starting from the year in which construction is completed.

2. No.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Hi,

1. This is all the more reason that she is not eligible for any interest deduction. Once, she is not eligible for interest deduction, there is no question of you caliming her part.

2. Yes, you are right. You can't claim more than 10 lacs unless rules changes

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

pre construction interest can be claimed in 5 equal installments.

Re 2 lacs is max limit for self occupied house .

No u cannot claim her share.

Swati Agrawal
CA, Mumbai
1146 Answers
7 Consultations

5.0 on 5.0

Maximum deduction allowed is Rs 2 lacs including pre-emi i.e. current year interest and your share of pre-emi interest. Suppose your share is 50% pre-emi interest would be 6/5 i.e. 1.2 lacs and current year interest would be 0.80 lacs.

Vivek Kumar Arora
CA, Delhi
4825 Answers
1030 Consultations

5.0 on 5.0

Yes your understanding is correct

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

You can claim deductions in respect of entire interest if the emi is paid by you. But the deduction shall be capped at 2lacs.

Also, for the years after construction, limit is 2 lacs annually including the pre construction interest.

Lakshita Bhandari
CA, Mumbai
5687 Answers
909 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA