Section 24 Income Tax Benefit of a Housing Loan

by Manshu on November 30, 2011

in Tax

A house loan repayment has two components – principal and interest – and both of these components are treated differently for tax benefit calculation purposes.

The principal amount is covered under Section 80C and has a Rs. 1 lakh limit. In order to claim the tax benefit under 80C the house should already be constructed, and should be a residential property.

Tax Benefit of Home Loan Repayment

Tax Benefit of Home Loan Repayment

Section 24: Tax Benefit on the Interest On Home Loan

The interest on the home loan is treated differently, and Section 24 deals with the tax aspect of the interest on house loan repayment.

The maximum limit under this section is Rs. 1,50,000 and you don’t have to actually live in the house to claim this benefit.

The interest payment is deducted from your taxable income and thus reduces your tax liability. There is no limit on the number of houses you can claim this as well as the location of the houses. The only limit is Rs. 1,50,000 on the whole amount.

There are special conditions like when you get the loan disbursed before the construction of the house and pre – EMI interest and Raag has covered these aspects in a lot of detail in his post about tax benefits of a home loan which you can read if you were interested in those details.

Correction: An earlier version of the article stated that the 80C deduction is only available if you are living in the house. CA Karan Batra notified me that you don’t have to live in the house to claim deduction. Apologies for the mistake. 

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{ 488 comments… read them below or add one }

nanda October 3, 2012 at 11:11 AM


I have 2 houses (One is self occupied and another is also self(Parents staying)) and for both i am repaying the loan. Whether both can be shown in income tax benefit?. If so, how? If not, what to do? Please clarify.


Jitendra P.S.Solanki October 4, 2012 at 7:11 PM


Yes.on first house you claim upto Rs 1.5 lakh while on 2nd there is no limit.


harish March 24, 2013 at 10:45 PM

hi can you clarify on the part of no limit on 2nd house. you mean there is no limit of income tax benefit if you have 2nd house??


rudrappa October 3, 2012 at 12:35 PM

Dear Sir,
i am planning to opt home loan, may be i wanted pay only interest upto Mar, 31st 2012. due to house it will be under construction, can i get claim for paid interest amt. and what has to be get for getting supporting doc from bank.


Roop October 29, 2012 at 6:09 PM

Hi Rudrappa

you can only claim rebate for interest paid in the year in which you get possession of the house under construction. The rebate can be claimed in five equal annual installments starting from the year in which possession is obtained.
For supporting docs you need to get home loan interest certificate from the bank which clearly states the EMI paid, pre EMI interest portion , interest portion and principal paid portion.


Ambrish November 25, 2012 at 12:23 PM

Hi, Can the rebate be taken after posession for the interest which is paid while the property was under construction. For example, I started paying interest to bank from Feb 2013 till Apr 2016 & i get posession in Apr 2016. Am i eligible to take tax benefit in financial year Apr 2016 – Mar 2017 for the past 3 years? Regards Ambrish


Krishna Murari October 18, 2012 at 1:43 PM

Dear Sir,
I purchased a home by taking loan at my hometown (Mathura) in which my parents is staying. And I live in the company provided house at my workplace in Guwahati.
My eligibility of tax benifit
1. Under section 80 C 1 lac. Is it include my PF amount also?
2. Under Section 24 b , 1.5 lac or unlimited?


Jitendra P.S.Solanki November 25, 2012 at 7:04 AM

Dear Krishna,

Yes, Sec 80C includes PF amount and under sec 24B you can claim upto Rs 1.5 lakh for first house.


topguy October 20, 2012 at 3:15 PM


I have purchased a flat and now I am getting possession of the flat. I have got the flat finanaced from the bank and currently a loan is ongoing. Now, I have to register the flat. Bank has agreed to fund the stamp duty/registration charges. If I get stamp dump charges financed from bank, will I be able to claim the tax benifit under 1.5L for stamp duty charges as well just like the ongoing home loan or are stamp duty/registry cost not covered under 1.5L rebate that you get on interest component paid for the current financial year.

Also one more question, I want a second car parking as well? So, will the second parking be covered under 1.5L interest section as well under Section 24?


Jitendra P.S.Solanki November 25, 2012 at 7:39 AM


Yes you can claim stamp duty and registration charges but under Sec 80C .

Sec 24 benefit is on home loan which is the cost of house excluding stamp duty and registration charges.


vinod shah October 20, 2012 at 4:18 PM

Dear sir,
I have two house in one city.
First home loan over where i am staying right now.
Second home loan started, which i have given on rent.
Can i claim upto 1.5 lakh or unlited(total) intrest of running loan ?


Jitendra P.S.Solanki November 25, 2012 at 7:49 AM

Dear Vinod,

You can claim unlimited for your second loan interest.


Sachin November 2, 2012 at 2:48 PM

Hi, I have constructed a house in my home town(Lucknow) with a loan of 30 lacs and will be on rent from this month. Currently I am staying in a rented house in Bangalore. Can I claim tax benefit on the actual interest paid (under 24b) ? Or it will be only 1.5 lacs.

What is the benefit if my parents will stay there ?


Jitendra P.S.Solanki November 25, 2012 at 7:52 AM

Dear Sachin,

On first house you can claim only Rs 1.5 lakh interest p.a.


Sourabh February 14, 2013 at 5:09 PM

No. You can claim for full exemption on the rented house (limit of 1.5 L does not apply).

You have to deduct 30% of the rental income received from the total interest paid though.


nitin November 2, 2012 at 4:05 PM

i m selling my one flat which is purchase in year 2002 and not shown in my books …and getting another property on my wife name … i want to know who we can save my capital gain tax..


Jitendra P.S.Solanki November 25, 2012 at 7:57 AM


Purchase of house in not shown in your books since you already have given tax on the source of funds you are utilizing.

On capital gains it will be saved if invested in another property within two years from date of selling your existing one. But you need to consult a CA first if you are registering it in your spouse name completely.


Ambrish November 17, 2012 at 2:53 PM

Hi, I have purchased a flat (under construction – construction link) & possession I will get after around 4 years from now. Now I am planning to make the remaining payment (of around 25 lakhs) via home loan & would like to start repayment back to bank too immediately (monthly EMI including principal+interest).
My question: Would I be able to avail any tax benefit on interest before getting possession or before I get possession (say after 4 years), whatever interest I am paying will not be counted at all?
My second question: Is it possible that I can avail tax benefit on both: HRA as well home loan interest?
Regards Ambrish


Jitendra P.S.Solanki November 25, 2012 at 8:07 AM

Dear Ambrish,

Any home loan interest you pay during construction period can be claimed in 5 equal yearly installments after the possession of your house.

Yes, you can claim both HRA and Loan interest benefit provided you meet the stipulated conditions prescribed in tax lawst


Ambrish November 25, 2012 at 12:19 PM

Thanks Jitendra ji for the update.
A doubt here: Say I took loan of 25 lakhs & start paying EMI (principal + interest) to bank from Feb 2013 and I get possession of the flat by Apr 2016. Now say in these 3 years (from Feb 2013-March 2016), I pay around 2 lakhs as interest. So am i eligible to take tax rebate in financial year Apr 2016 – Mar 2017 for this 2 lakhs interest which i paid in past 3 years?

What I understood from your answer is: In Apr 2016 – Mar 2017, I will be eligible to take tax rebate upto 1.5 Lakhs & remaining 50k plus the interest for this financial year (Apr 2016 – Mar 2017), I will be able to take in subsequent financial year & so on.
Is this correct understanding?
Regards Ambrish


Saurabh Taandon November 18, 2012 at 6:40 PM

I would like to know the Tax benefit things in home loan—–
As I already have a one residential property with home loan. This financial year my Principle amount is Rs.60000 & Interest component is Rs.220000. Out of that I am calming Rs.150000 in section 24c as interest component.
I am planning to buy another property for investment purpose of Rs.30Lakhs with the home loan Interest component of Rs.280,000 Pls confirm if the same amount I can claim more for section 24c as interest component.
Pls help.


Bhaskar November 20, 2012 at 3:14 PM

I booked a flat in soft launch in oct 2008. The loan of rs 17,00,000 was sanctioned by lichfl in may 2011. I started paying EMI’s from Jul 2011 as interest component only.. can i claim rebate under sec-24??? because my employer says that i can only do it after the completion of the house….


unknown November 24, 2012 at 12:01 PM

“If you work in a different city then you can claim exemption on the principal amount of your home loan under 80C” This statement of yours is contradicting with the statement that we can claim when we are only living in the house.


Manshu November 24, 2012 at 9:57 PM

There is an exception where you can claim the deduction even if you’re not living in the same house, but that only applies if you are working in a different city.


Akshay M November 26, 2012 at 1:37 PM

Dear Sir, I have registered my property in March 2012 which is under construction and possesion in mid 2013 and has Home loan.
Currently, i am staying on rental basis and in different location from my booked property.. Can i claim from income tax benefit ? and what all documents i need from Builder and Banker ? Please help.
Thank You !


Dhananjaya Reddy November 27, 2012 at 11:49 AM


I have a vacant plot in the name of my wife. Now i am planning to construct a house by taking housing loan. I am an employee in one PSU and my wife is not working. Whether i am eligible for IT exemption for principal under 80C and interest under 24c? Kindly clarify.


sarath kumar December 4, 2012 at 7:08 PM

I have one existing home loan in one city. small loan of 5 lakhs o/s. where my inlaws are staying. so no rental. but i am showing some nominal rent received.. i am showing this in my IT all these years. Recently taken second house at another city where my parents just occupies. no rent… I am staying in another state on my job. What is my interest cap (1.5 lakh or more) . can i show the second house with out rent where my parents are staying to claim the interest benifit???

Please advise…

Sarath ,9844073704


pankaj singh December 12, 2012 at 8:29 AM


I am buying a flat and making my wife as Co-Owner. I am taking loan on my name as she is house wife. I want to know while taking TAX benefit may I eligible for both principal amount 100000 per year and interest amount 150000 per year OR I can only be eligible for half amount(principal and interest) as I made my wife as Co-Owner so rest half benefit she only can take.

Hope you got my point.



First Buy December 17, 2012 at 8:35 AM

While i live in Delhi, I am purchasing a flat in Bangalore. The flat is slated to be ready for possession in Jan 2014
I am taking a loan of 21 L in Jan 2013 with 3 year tenure paying an interest and principal of:
Yr 1: 190837 & 628224 respectively
Yr 2: 121605 & 697457 respectively
Yr 3: 44743 & 774319 respectively
My annual compensation is 50 L pa
What tax benefit can i claim for the above?


R Aravind December 18, 2012 at 4:49 PM


I and my wife constructed house which contains 3 kitches. We both are staying in 1st floor. We had let out the Ground Floor Kitches/(2 portions) to our parents seperately for Rs.2000/-each /Month. My salary is 8 Lacs and my wife is 7.5 Lacs. Its a joint loan & joint property. The annual interest is 5Lacs & the Principal amount is 70000. We would like to divide the tax benefit equally. How can we get maximum tax benefit out of this case. Pls suggest


Jayesh Deokar January 19, 2013 at 12:23 PM

If both of you pay the loan installments equally, then it is advisable to treat the 50% of the loan principal and interest in your account and 50% in that of your wife. Doing this, you will be able to claim maximum exemption u/s. 80 (Rs.100000 x 2) and u/s. 24 (Rs.150000 x 2), and that too within the four corners of the IT Act, since the property and loan both are joint.


yatinder December 19, 2012 at 10:42 PM

Dear Sir,

I have taken home loan in joint name with my spouse for a house in our joint name. My spouse is salaried having a salary account. However the EMI is being presently deducted from my account.
Can we both claim tax benefit of Rs 150000/- separately while calculating our annual tax liabilities ?


ashok February 6, 2013 at 8:55 AM

can husand claim benefit of interest rebate for housing loan taken y his wife and he is guarantor of loan?


umesh December 20, 2012 at 8:15 AM

dear sir,
i have purchased a flat with home loan. what document do i need to produce at my office to get tax benefit. As they are asking to produce possession certificate of flat but the flat is already registered last month in my name as i have purchased ready to move flat.


sunil December 24, 2012 at 11:23 PM

Respected Sir

Recently I’ve taken joint home loan from SBI for purchasing a constructed house.

I am the co-borrower of the home loan, my mother being the principal borrower.

Further, I am repaying the emi of the loan. The property is registered in the name of my mother only. The ikraarnaama of the property bears the name of both of us.

My query is:
Whether I am eligible for the relief under sec 24 and sec 80c of the Income Tax act?
Would you please provide me with relevant circular(s) or rule(s) in this regard?



Sandeep January 8, 2013 at 2:30 PM


Please help me out in clarifying my concerns related to home loan.
1) Have running loan on 2 properties- 1 in Ghaziabad & 2nd in Delhi.
2) Possession of both the properties has been taken recently in Nov. – Dec. 2012.
3) Property in Delhi is not in livable condition.
4) Residing in a rented house in Delhi.
5) Working in Noida.

Now considering the above facts, my concern related to availing HRA & benefit of tax on principal, interest paying for both the properties are:
1) Can I avail HRA from April 2012 till Dec. 2012 i.e. till the time I got possession of Ghaziabad property?
2) Can I avail deduction of total principal paid for both the properties (Delhi+Ghaziabad) under section 80C? with a limit of 100000.
3) Can I avail deduction of total interest paid for both the properties (Delhi+Ghaziabad) under section 24? And is there any limit on the interest paid?
4) How the deduction for the interest paid before April 2012 on these 2 properties can be availed & under which head/section this amount can be counted.



abhishek Kumar January 10, 2013 at 7:51 PM

can we club the emi intereste+1/5 th of pre emi intreset both and deduct it from rental income if the house is on rent and claim tax deduction on the resulting amount if it exceeds 150000 also?


aishwarya January 10, 2013 at 11:01 PM

Can I not sell the property for 5 years if I claim benefits under section 24 b?


Jayesh Deokar January 28, 2013 at 12:19 PM

You can sell your property anytime you desire. But If you sell your house before the expiry of 5 yrs, all the money you saved under sec 80C in earlier years will be deemed to be your income in the year of sale and added to your income. For instance, if you bought the flat in 2009 and in next 4 yrs you saved 1 lac in tax under sec 80C, then this 1 lac will be deemed to be your income in the year of sale and will be taxed .

However interest component once saved is saved and it won’t be reversed. Thus, this rule isn’t applicable to the benefits derived u/s.24.

Jayesh Deokar


Gaurav January 14, 2013 at 2:13 PM

Sir, regarding home loan, is there any limit of time for clamming Income tax rebet? i.e. Upto this much years I can claim Income Tax Rebet and after that period I cant.


Jayesh Deokar January 28, 2013 at 12:22 PM

There is no such limit for claiming rebate from income tax. As long as you pay your home loan principal and the interest thereon, you can claim the rebate.

Jayesh Deokar


Naga Srinivasa Rao Miriyala January 23, 2013 at 4:17 PM


I have take housing loan from bank of Rs.16 lakhs for constructing 1st floor ..

the house in on the name of my father and mother…but the EMI is getting deducted from my savings account..

Please suggest me how to claim for the income tax exemption for the amount I am paying for housing loan.


Jayesh Deokar January 24, 2013 at 1:19 PM

Housing loan being in your name and EMI being paid from your account, you can always claim exemption under IT Act under the following two heads-
1. U/s. 24 – Interest on housing loan:-
a. If the property is self occupied, you can claim upto 1.5 Lakh
b. If the property is let out, you can claim any amount paid towards interest. There is no upper limit for claiming exemption in such a case, provided you show rent income against such property.

2. Under chapter VI-A
U/s.80C – Housing loan principal repayment:-
You can claim any amount you have repaid, however, the total amount of deductions u/s.80C are restricted to Rs.1 Lakh. Thus, you cannot claim beyond that.

Jayesh Deokar


Kaushik Ghosh January 24, 2013 at 2:57 PM

I have a flat in MiraRoad,Thane where I am staying now and home loan for this is over.
I am planning to buy a new flat in Kolkata thru home loan.

Can I claim only 1.5 lacs rebate under Section(24) or unlimited interest amount ??
If it is only 1.5 lacs – how can I get unlimited interest amount rebate – is it by renting the Kolkata flat ??


Jayesh Deokar January 25, 2013 at 2:39 PM

Not Exactly!

If you are planning to stay at Kolkata flat, the limit of 1.5 Lakh will apply to it.

But, if you are NOT planning to reside in your future Kolkata flat, you can claim the rebate upto any amount you pay towards interest by application of following rules:-

1. If you let it out for a rent, the annual value of the flat is to be calculated based on the rent earned/fair rent receivable from the property. Annual value, in such case, would be the highest of the Actual Rent Received and Fair/Reasonable Rent. For example, If the actual rent received is Rs. 60,000/- and fair rent/ reasonable rent/ municipal valuation is Rs.72,000/-, the annual value would be Rs. 72,000/- for the purpose of the Income-tax Act.
(Annual value is nothing but the rent earning capacity of the property. The terms “fair rent”, “reasonable rent” and “municipal valuation” are synonyms, which are to be taken to mean the rent prevailing in the area wherein the property is situated.)

2. If it is vacant, Annual value would be Fair/ Reasonable Rent.

3. However, if a property is let and was vacant during any part or whole of the year and due to such vacancy, the rent received is less than the fair rent/ reasonable rent, then such lesser amount shall be the Annual Value. For Example, If the actual rent received is Rs. 50,000/- and fair rent is Rs.72,000/-. Here, if the property was vacant for 2 months in and the rent received i.e. Rs. 50,000/- is for 10 months, then the Annual Value shall be Rs. 50,000/-.

4. Further, you can claim rebate equal to 30% of the annual value towards repairs maintenance etc. would be allowable, irrespective of any expenditure incurred by you.

5. You can also calim rebate of the Municipal taxes actually incurred on the flat.

So the formula would be-
Annual Value xxx
Less: Home loan interest xx
Less: 30% of the Annual vale xx
Less: Municipal taxes paid xx
Income from house property xx
If the above deductions are more than the Annual Value of the property, then the differential amount will be the “Loss on House Property”, and the same is adjustible against your income from business/ profession/ salary etc.

Hope this serves your purpose!

Jayesh Deokar

We make a living by what we get,
what we give however makes the life!!


Kaushik Ghosh January 26, 2013 at 12:51 PM

Hi Jayesh,

Thanks a lot for your reply – really appreciate it.
I am a salaried person.

If I keep the Kolkata flat vacant – How do I establish the Annual Value of the property i.e. what document I need to submit to claim income tax rebate against my salary ??

Please advise.


Jayesh Deokar January 28, 2013 at 11:55 AM

1. You may produce the documents pertaining to transactions of some other parties in the matter of the other properties in the neighborhood, more or less comparable to your property.


2. The Municipal Corporation of Kolkata will definitely determine Annual Value of your flat for the purposes of charging it with property tax. You may produce the same as a proof of valuation.


3. If your property is subject to the Rent Control Act, the Annual Value of your vacant property will be the maximum rent you could legally recover from your tenant under a Rent Control Act. And in such case, you need not produce any documentory evidence.

You need to furnish all the details pertaining to the “Income/Loss from house property”, if any, to your employer (i.e. person responsible for deduction of taxes from source) in due time, so that he (the employer) will consider the same before deducting TDS from your salary.

Jayesh Deokar


raj January 31, 2013 at 6:16 PM

I have some queries related to home-loan

(1) In the year that I sell away a house, is the tax relief on home-loan interest available to me? If yes, in case it was self-occupied do I get the full benefit on interest up to 150000 (or is it in any way proportional to the number of months in owned in that FY)?

(2) I have two houses in different cities, A and B. My parents live in A and I live in B. Can I arbitrarily choose to declare “A” as self-occupied and “B” as let out? I understand that I will need to show a “notional annual value” for B in Form 12(c) but the question here is whether it is acceptable norm to arbitrarily choose one of my properties as self-occupied and the rest as let-out?


Murali February 2, 2013 at 4:31 PM


I have couple of questions on availing tax benifit on home loan.

I have a flat and I am paying EMI and claiming one Lakh on principle and 1.5 L on the interest payment.

Now I bought another house for which i have started paying EMI. How can I claim tax benifit on the second house. I am living in the first house and not yet given the second house for rent.

Apreciate your reply on this. Thanks!



Ajay February 15, 2013 at 5:23 PM

Dear Sir,

I have taken a loan 50 % on my name and balance on my mother’s name . I have purchased a house by that loan. since beginning i am paying whole EMI through my account.
whether i am eligible to take deduction of principal and interest on both loan or only on my loan.


thanaseharan February 22, 2013 at 12:54 PM

sir,i am govt servant allotted govt quarters rent paid by me, i have own house-housing loan now the quistion is i rebate the housing loan in IT


Amol February 22, 2013 at 3:17 PM

I Have two flats in Thane . First flat purchased in 2005 . 2nd Flat purchased in 2012 . I am stayng in 2nd house for which interest component is Rs 400000 and interest componont for First flat is R2 45000/- only and it is rented (for a monthly rent of Rs 1000/) . Is it possible for me to show 2nd house as rented and first flat as self occupied so that I can claim enire Rs 400000/- as interest. Pl Guide me


Manshu February 25, 2013 at 5:53 AM

No, it is not.


Deepak February 25, 2013 at 2:40 PM

I am a U.P. state govt servant and residing in a government quarter. I’ve taken a home loan to purchased a semi built house, as the house is being constructed by me I am residing in govt quarter. In such condition can I claim the deductions u/s 24 for EMI interest and u/s 80 for EMI principal.


sukanta chakraborty February 25, 2013 at 3:20 PM

I have purchased a flat in the year 2002 and got i.t. benefits (both principal & interest) and the flat is now lying vacant as my working place is too far from that flat and I have repaid full housing loan. Now I want to purchase another flat near my working place from banks/financial institution. Now I want to know that can I get full i.t. benefits (both principal and interest) as I got like before ?


Manshu February 25, 2013 at 6:14 PM

In case of second house, no deduction is available for principal payment, but it is available for interest repayment.


Manash February 25, 2013 at 8:49 PM

Dear Sir,
I have a home loan of Rs- 8,00,000.00 (Eight lakes), I am a govt Employee of Assam state, and I am drawing house rent (HRA) with my salary. I live in the same house for which I have borrowed loan and paying EMI for it.
My question , am I eligible for benefits IT of under both the section 80 C & Section 24 ?


baburaj k v February 28, 2013 at 7:47 AM

i have taken a loan for renewal of my house is the interest paid is eligible for rebate and is there a limit


Manshu March 4, 2013 at 5:09 AM

Renewal of your house? Renovation?


Anand Pose February 28, 2013 at 3:42 PM

Dear sir,
I have two house in one city.
First home loan over,which i have given on rent.
Second home loan started, where i am staying right now.
Can i claim upto 1.5 lakh or unlited(total) intrest of running loan ?


Shekhar M March 4, 2013 at 11:11 AM

I am claiming both 80 C and section 24 benefit for my housing loan.. just want to ask can i claim further deduction on account some furniture purchased and renovation of the house? if yes, under which section ?


Manshu March 5, 2013 at 6:55 AM

No, you can’t claim deductions for furniture or renovation.


Ananta Karmakar March 5, 2013 at 9:52 AM

Dear Sir,
I want to take a home loan to construct a house in a plot which is my father’s name. My father is dependent on me. I am staying ouside in a rented house. Shall I get tax benifit on the Principal of the loan I shall Pay. Shall I get any tax benifit on the interest I shall pay as there is a statement that Tax benifit on interest will be given after possessing the property and I am not going to possess the property.Is it possible to constuct the house in my name(but land is in my father’s mane) and get the tax benifit on interest. In the same time shall I get tax benifit on HRA.

Thanking You.


Manshu March 5, 2013 at 11:26 PM

Dear Ananta, since you won’t be living in the house, the principal is not going to be tax deductible for you.

The interest payment will be available for you to claim tax deduction if the house is in your name. The condition to live in the house is not present to claim interest deduction.


Rajiv March 11, 2013 at 9:03 PM

I took loan to buy Plot and construction on the plot. I returned the loan within 2 years and took income tax benefit for 2 year on interest i paid. Now i am buying a flat, i would like to know on how much interest i can get income tax benefit?


AMIT March 12, 2013 at 11:31 AM

I have booked a builder’s flat in April 2010 till date, the construction has NOT been completed / possession not handed over. I had taken housing loan in april 2010. I am paying EMI’s regularly. I am a Govt employee. My Queries are:

1) What exemption can I claim and under which all section {Sec 80 / Sec 24} AND What amount.
2) Is there a rule that Construction MUST be competed in THREE Years, to claim benefits.





K.RENGANATHAN August 21, 2014 at 1:48 PM

We booked a vacant plot on my name and my wife’s name(50:5o share)during the year 2009 forwhich I received SBI home loan Rs 12,00,000.00 on 8.10.2009. We applied for a plan permit and got the approval on 26.12.2011. We started our house construction in the same purchased plot and in the mid of construction, we applied for a home loan for a value of Rs 20,00,000.00.The first installment of home loan of Rs 15,00,000.00 was issued on 10.08.2013 and final installment of loan was issued during the month of April, 2014. The house construction was completed on 3.8.2014. We remitted the following details Interest to SBI.
A) For a loan of Rs 12,00,000.00
i) Pre-construction period interest on the loan amount of Rs
12,00,000 issued on 8.10.2009 are as follows:

8.10.2009 to 31.3.2010 = Rs 45032
01.04.2010 to 31.3.2011 = Rs 91157
01.04.2011 to 31.3.2012 = Rs 90475
01.04.2013 to 31.3.2014 = Rs 96164
Total Amt of Interest = Rs 4,08,732
ii) Post construction period on the loan amount of Rs
12,00,000 issued on 8.10.2009:-
Projected interest (01.4.2014 to 31.3.2015)
= Rs 89,734
B) For a loan of Rs 20,00,000.00
a)Pre-construction period interest on the loan of Rs 20,00,000.00
issued on 10.8.2013 is as follows:
(10.8.2013 to 31.3.2014) = Rs 1,10,564
b)Post construction period on the loan of Rs 20,00,000.00
issued on 10.8.2013
Projected interest (01.4.2014 to 31.3.2015) =Rs 1,94,900.00
Since the house was not completed within three three years from the date of issue of first loan, I am told that I will be eligible for Rs 30,000.00 only instead of Rs ((50%*4,08,732)/5) +(50%*89,734.00) and the pre-construction and post -construction interest issued on 10.8.2013 for a value of Rs 20,00,000.00 loan can be fully claimed. As the house is self occupied and under such scenario,
My Queries are:
1) What exemption can I claim and under which all section {Sec 80 / Sec 24} and what amount?
2) As the final disbursement of loan falls during the month of April 2014,Is there a rule that construction MUST be competed in THREE Years, to claim tax benefits from the date of first installment of loan? i.e 8.10.2009
3) In order to avail full tax exemption of Rs 2,00,000.00, whether the constructed house is to be self occupied or to be let out.?
3) The construction is started after the first loan and the second home loan is also availed, how the completion date of construction is calculated?i.e from the date of first loan or from the date of 2nd loan?
Kindly advice


sunil March 13, 2013 at 11:42 AM


I’ve taken a joint home loan along with my mother for purchasing a constructed house. However, the house is registered in my mother’s name only. I am working at another place in a different state. I am repaying the entire EMI from my salary as my mother is a non-earning member of the family.

Income tax practitioners however said that I cannot claim deductions under sec 24 and 80c as the house in not registered in my name.

My contention is that the either sections, sec2 4 and sec 80C, DOES NOT require that the house so purchased or constructed should be in the name of the assessee. In other words, it doesn’t require that the assessee should be the owner of the house. It just requires that the asseessee should have purchased or constructed the house from borrowed capital.

( A similar case can be cited in sec 54F where the sec doesn’t mention that the investment of the long term capital gain should be in done in the name of the assessee. And Delhi High Court has decided in favour of the assessee where the assessee has invested the long capital gain for purchasing the house in wife’s name only)

( copy of sec 24 follows:

24. Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—
(a) a sum equal to thirty per cent of the annual value;
(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

[Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.)

My query is:
Whether I can claim the relief under sec 24 and sec 80C?
If not, please mention the relevant rule or act of income tax.



Manshu March 20, 2013 at 10:10 AM

I’m sorry I’m not sure what will happen in this case.


Pankaj Gupta March 15, 2013 at 5:57 PM

Hello Sir,

First Home:
I have purchased my first home(Year 2010) at noida, its under construction (Possession 2016), I am paying EMI of 17500.

Second Home:
Last month (Feb-2013), I purchased another flat in noida itself, This is also under construction (Possession 2014), Paying EMI 21000.

I am living in rented flat in noida.

Here my question is :
1. Am i eligible for HRA + Home loan Interest & Principle for any home (If yes then for which one ?).
2. Should i claim tax rebate for both home loan (First home & second home)?

Pankaj Gupta


SUDHIR BHATNAGAR March 16, 2013 at 11:10 PM

is loan from LIC housing for purchase of plot eligible for section 80C & 24

please advise

Sudhir Bhatnagar


YATIN JAISINGH March 19, 2013 at 8:27 AM

Dear Sir,
I am availing a joint home loan with my wife of Rs. 20 lacs each (Total 40 lacs) for our First Home. As per the Union budget the tax exemption on interest component for first time buyers has been increased to 2.5 lacs for loans below 25 lacs.

So, in our case as the individual loan for each is 20 lacs (less than 25 lacs) for our first home. Will both of us be eligible for tax benefit on interest of 2.5 lacs p.a. ??


YOGESH M VED March 19, 2013 at 11:08 AM



Vinita March 20, 2013 at 6:25 PM

Hi all:

I bought a house in 2006 and took a loan to purchase the property. I have been claiming deductions under section 24 and section 80c for the past 6 years. Now i have paid down the loan completely this year. I am planning to buy a new house in the same city that i purchased the first house in in the next fiscal year. The first house remains unoccupied and I am planning to claim the principal and interest (capped at 150,000) for the second house – though it will still be only one home as far as the income tax is concerned.

I wanted to understand if this is technically correct or do i have to show the second home i purchase under the second home and only claim interest net of nominal rent as deductions.

Thank you,


Manshu March 26, 2013 at 6:16 AM

As far as I understand the second house works only if you are paying off loan for two houses at the same time.


Vinita March 26, 2013 at 4:14 PM

Thanks Manshu!

So what you are saying that even if I haven’t sold off the first house I bought and am not claiming rent income on it, i can still treat the second home I buy in the same way as the first home as long as I am only claiming interest deductions against it.



Manshu March 27, 2013 at 7:02 AM

This comment is not clear to me, I’m not sure I understand what you are saying. What I was trying to say is that based on my understanding I feel that the rule for the second home only works if you have two home loans simultaneously.


Vinita March 28, 2013 at 11:41 AM

Hi Manshu:

Let me try and summarize better.
• In 2006 I bought a house which I declared Self Occupied Property. I took a housing loan to buy it.
• From 2006 to 2013 I claimed tax benefits under section 80C (for Principal of Rs 1 lac) and under section 24 (interest loss upto a maximum of Rs 1.5Lacs per annum).
• In March 2013 I paid down the housing loan and cleared it.
• I am planning to buy one more house in the same city and claim that as a self-occupied property. I aim to get a housing loan to buy it.
My questions are the following.
• Can I claim the same benefits (80C and 24) for the housing loan I am taking to buy this second self-occupied house – based on your inputs above you think I can?
• Will I have to now show nominal income from the first house I had bought in 2006 – even though I have not leased it out?
• Can the IT department force me to either claim the benefits for the house I am planning to buy as a second home by saying it cannot be Self-Occupied Property as I already have one Self Occupied Property in the same city OR Can they force me to declare the first house as a rented property and pay tax against nominal rent income??



Manshu March 29, 2013 at 7:33 AM

Yes, as far as I know you can claim both benefits without having to do anything additional. I Googled this up and found another link which seems to confirm this. You can read it here and see if you can post any questions there and got more definite answers.


mayuritilak April 9, 2013 at 9:25 PM

salary gross 750000
home loan principal is benifical for deduction from salary calculation
interest paid on housing loan is rs 125000 can it benifical for as 100000lac investment
an other mediclaim ins is benifical for this


mayuritilak April 9, 2013 at 9:29 PM

salary is rs 750000
housing loan principal rs 25000 pm it is benifical for salary calculation
mediclaim rs 8000
housing loan interest rs 10000 pm it is benificial for salary tds calculation


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