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Can One Claim Interest Deduction U/s 24 On Two Home Loans For Same House ?

Section 24 pertains to allowance of deduction from annual value of the house property. Clause (b) of section 24 deals with interest. It states as under

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:

Plain reading of the aforesaid provision 24(b) shows that there is no bar for taking loan from more than one person. The only condition for allowance is that the loan borrowed should be utilized for the purpose of construction, buying or reconstruction or repairing of the house whose income is assessable under the head “Income from house property”

If the property is let out there is no ceiling on the amount of interest that can be claimed as deduction. If the property is Self occupied maximum amount of interest that can be claimed as deduction is Rs 150000 (if loan is for repairs Rs 30000)

About CA Karishma

I am a Chartered Accountant by profession and an avid teacher. Writing is my hobby and this blog is a platform to share knowledge and interact with prospective Chartered Accountants. I locate my work at the intersection of Chartered accountancy & education. I teach among others, Taxation at Tapasya Academy for CA, one of the premier institute for Chartered Accountancy course in Andhra Pradesh.

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2 comments

  1. mam if the loan borrowed from friend,family does it is will come us 24. does standard deduction applicable??

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