Deduction in Respect of Interest on loan taken for Residential House Property:
For claiming deduction, he need to satisfy following conditions
- The Assessee must be an Individual, whether he is resident or non- resident
- Assessee takes loan for acquiring residential house property, loan is taken from
- Bank or
- Housing finance Company
- Loan for house, sanctioned by the Bank/Housing Finance Company during April 1,2016 and March 31,2017.
- Amount of Loan sanctioned does not exceed Rs.35Lakh, and the value of residential house property does not exceed Rs.50Lakh
- Assessee does not own any residential house property on the date of sanction of loan.
Amount of Deduction is :
Amount of interest on above loan or Rs.50,000 whichever is less
If a assessee is claiming deduction under this section, then the assessee cannot claim deduction under any provision of the Act
Housing Finance Company: It means a public company formed or registered in India with the main object of carrying on the business of providing long term finance for construction or purchase of residential houses in India.
Bank means banking company to which Banking Regulation Act 1949 applies