What are the Deductions under section 24 of Income Tax Act 1961?
Section 24 of the Indian Income Tax Act, 1961 takes into consideration the amount of interest an individual pay for home loans. This is also known as “Deductions from income from house property.” Basically, it allows you to claim tax exemptions on the interest amount of your home loan.
Can I claim HRA and 24b?
Answer: There is no restriction on you claiming HRA while claiming tax benefits in respect of home loan as long as you are satisfying the conditions laid down under Section 10 (13A) and 80C and 24(b).
Who is eligible for 80EEA?
Features of Section 80EEA The deduction under this section is available only to individuals. This deduction is not available to any other taxpayer. Thus, if you are a HUF, AOP, Partnership firms, a company, or any other kind of taxpayer, you cannot claim any benefit under this section.
What is loss from house property in income tax?
g. Loss from house property: When you own a self occupied house, since its GAV is Nil, claiming the deduction on home loan interest will result in a loss from house property. This loss can be adjusted against income from other heads.
What is 80EE in income tax?
Section 80EE allows income tax benefits on the interest portion of the residential house property loan availed from any financial institution. You can claim a deduction of up to Rs 50,000 per financial year as per this section.
What is section 24 (B) of Income Tax Act 1961?
Section 24 (b) of the Income Tax Act, 1961 is applicable to a Home loan for the purchase of a house or construction of the house property. You can avail a deduction of up to Rs. 1,50,000 of your total tax liability. Also, reconstruction, renewal, or repairs are eligible for deductions under the said section.
Which income is subject to tax after deductions under Section 24?
In this way, any income that comes from rent and the annual value of all the additional houses are subject to tax after the deductions that are made under Income Tax’s section 24. Income Tax Act section 24 has two types of deductions:
Is interest on home loan allowed as deduction under Section 24 (B)?
Also only the interest on home loan is allowed as deduction u/s 24 (b) and not the interest on interest. Two new sections (80EE and 80EEA) have been introduced in the act, one by finance act 2016 and the other by way of finance act 2019 which deals with the deduction of interest over and above section 24 (b).
What is the difference between section 24 (B) and Chapter VI – a?
Unlike section 24 (b) these two sections allow the deduction from the gross total income (GTI) under Chapter VI – A of the act and not from the income under house property. Therefore the assesse must have a positive GTI in order to claim deductions thereunder.