Tax Deduction for Interest Accrued on Home Loan

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  1. sanjitsil

    sanjitsil New Member

    Thanks for your reply. But there is an opposite comment in this post shared by member rudrabose, on Jul 21, 2015.

    "No, there is nothing else you can claim for FY 14-15 as you havent paid anything as Repayment.

    You cannot claim any amount as a deduction till the time you dont pay it."

    If someone can conclude ,it will be highly appreciated.

  2. Parul_Gupta

    Parul_Gupta Active Member

    @sanjitsil : The interest is allowed to be claimed on accrual basis and therefore the interest accrued in FY 2014-15 can be claimed as a deduction
  3. sanjitsil

    sanjitsil New Member

    Many Thanks for your reply.
    To clear Accrued int. concept could you please help me to calculate the int. on loan amount that can be claimed in FY 2014-15 for the below scenario:

    26 L Loan @ 10.10% p.a. for 20 years Taken in Mar,2015 and Property occupied in Mar,2015 as well. EMI started from April ,2015. Pre-EMi int paid in March,2015 is Rs. 4000. Still Rs.200000 can be claimed as int. on Loan for FY 2014-15?
  4. Yatin Gandhi

    Yatin Gandhi Active Member

    You can only claim Rs. 4000 deduction as the amount accrued for FY 2014-15 is Rs. 4000 only
  5. sanjitsil

    sanjitsil New Member

    Thanks . Now it is more clear. One more query I have.
    I took loan from parents for purchase of flat of Rs. 500000 in Dec.2014 @18% p.a..
    Can I claim deduction for int . on Loan of Rs. 30000(500000*18%*4 months) for FY 2014-15 although i have not paid any amount to my parents yet?
  6. Divye Miglani

    Divye Miglani Member

    The person giving the loan has to issue a proper certificate for the same and their should be a proper agreement for the loan between the parties.

    Even if you satisfy all the norms, it sounds a bit fishy that you have taken a loan @18% from your parents. The Income Tax Officer may raise a question that it is an interest free loan and all the docs have been created only for the purpose of tax evasion.

    Better not to claim tax deduction in this case.
  7. I agree with the above view
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