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Interest paid on purchase of house and interest paid on renovation loan

(Querist) 27 November 2014 This query is : Resolved 
Sir,
I had purchased a second hand flat(10 years old) on 2010 by taking a loan. I am claiming tax saving u/s 24 for the interest paid on this housing loan. In 2014 I had taken another loan to repair and renovate the same flat where I am saying now. Can I cliame the Interest Paid for both the loan together(with in the ceiling of Rs.1.5 Lakhs U/s 24 of IT Act?
ROHIT SHARMA (Expert) 27 November 2014
1. Yes, you can do so. However do consult a chartered accountant.
Rajendra K Goyal (Expert) 27 November 2014
You can include it in total housing loan interest exemption of Rs. 1,50,000/- for self occupied house. You can also explore possibility of extra interest rebate of Rs, 1,00,000 u/s 80EE provided:

This is your 1st house purchased
Value of this house is Rs 40lakhs or less
Loan taken for this house is Rs 25lakhs or less
Loan has been sanctioned by a Financial Institution or a Housing Finance Company
Loan has been sanctioned between 01.03.2013 to 31.03.2014
As on the date loan is sanctioned no other house is owned by the tax payer

Anirudh (Expert) 27 November 2014
The benefit of deduction of interest on borrowed funds is available under Sec. 24 only in respect of the property "acquired" or "constructed" with borrowed capital. It is not available for interest on capital borrowed for renovation / repair.



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