I am a govt employee and have availed a House Building Advance of Rs. 5.00 lakhs at 8.5% on IBB (Interest Bearing Balance) Method.
I am aware of Tax Benefit under section 24b which provides benefit of Rs. 1.5 besides Rs 1.0 lakh.
Since under IBB method, (as I am told) only principal is paid back first and interest is recovered only after full repayment of principal.
Hence I was never sure if the interest accrued on this loan can also be claimed for exemption under section 24b.
It would be kind enough if you could enlighten me with provisions so that I can also claim this benefit of exemption.
Ashok K Gupta