Buying house on loan and related benefits

POSTED BY Prashant ON April 3, 2013 11:44 pm ONE COMMENT

Dear Sir,

I live in Gurgaon on a rent accommodation and planning to buy a ready to move house in Indirapuram (ghaziabad). Will be taking home loan for part payment and need some review on the related tax benefits – 

Sec 80C – principal -max Rs 1 L

SEc 24 – interest beneift (for loan less than Rs 25L, the limit is Rs 2.5L and loan more than Rs 25L it is Rs 1.5L) – is Rs 2.5L limit only for this FY or likely to be maintained in the future. 

If house is put on rent and rental income declared – Can i deduct the entire annual interest paid to get my taxable income for an year, irresepctive of the loan amount (less/more than Rs 25L). 

I do not have any other loans outstanding.

I am also planning to take Rs 10L from friends (which i wish to pay back without interest) in this financial year. What can i do to ensure that it is not counted as my income from IT scruitny point of view or how can i keep it as safe both for me and friends from IT audits?

Thanks,

Prashant

One reply on this article “Buying house on loan and related benefits”

  1. Dear Prashant, first of all decide what benefit you want to avail? There are too many loose ends in your query. if your idea is to invest & earn rental income, please do note, rental income ‘ll be added up into your income. the enhanced limit of 2.5L Rs. is only for current FY as of now. Can’t comment on future years as dear Finance Minister is not even sure of his winning or portfolio in next election. 🙂

    Thanks

    Ashal

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