What is exemption limit of interest U/S 24b of INCOME TAX ACT 1961?
U/s 24(b) the interest repayment of home loan is eligible to be set off as loss from other income heads, upto Rs 1.5 lakhs (Rs. 30,000 if property is acquired earlier than April 1, 1999), in case of self occupied flats. In case the flat is rented, there is no limit but you have to declare Income from House Property & the annual rent should be more than or equal to interest. If loan is availed for house renovation, then the interest up to Rs. 30,000 pa is allowed as deduction. The entire PEMI interest amount (the interest amount paid during construction period) is allowed as a deduction under Sec 24 of IT Act, equally over five years (20 per cent of total interest paid), starting from the year in which the construction is completed.
