Home Loan Interest Deduction if staying in Govt accomodation

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    HEM THE JUDGE New Member

    I am a Judicial Officer in Delhi. I had purchased a purchased a property in Ghaziabad in April 2013 along with my younger brother. we had availed a housing loan from HDFC bank for Rs forty one laks. The EMI of Rs 41600/ is being shared by both of us. The house is on rent. Last Year for about twenty days the house remained vacant otherwise the house was on rent. the monthly rent is about 13,500 rs per month. As per the certificate issued by the bank for the financial year 2014-2015 the interest amount is rs 431,769 and the principal amount is 56,139. My DDO has refused to grant me any exemption for the interest as well as the principal amount on the ground that since I am residing in the govt. accommodation , hence, he cannot grant me any exemption and only ITO can grant me the exemption. I did not find any provision in the IT Act in his support. Please advise.

    Secondly, I have read section 24 of the IT Act. I believe that since I have rented out the flat, hence the whole amount of interest being paid by me can be reduced from my taxable income if I add the rental income as the house is not in my possession . Please advise.

    Thanking You.
    Yours faithfully

    Hem Raj
    T.Venkatesu likes this.
  2. rudrabose

    rudrabose Active Member


    There is no provision as intimated by you.

    Exemption for repayment of home loan is allowed to everybody irrespective of whether they stay in govt accomodation or own accomodation.

    Moreover, as you have given the property on rent - you can claim deduction of interest under Section 24 without any maximum limit.

    The total amount of interest will be allowed to be claimed as a deduction.
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