you will be voted according to your given Answer,

1. Loan is utilized for construction or acquisition of house property on or after 1-4-1999: 2 Such construction or acquisition is completed within 5 years from the end of the *200.000 financial year in which the capital was borrowed: and 3. The lender certifies that such interest is payable in respect of the loan used for the acquisition or construction of the house or as refinance of the earlier loan outstanding (principal amount) taken for the acquisition or construction of the house. In any other case * 30.000 Taxpoint: In any case, deduction in respect of interest on loan on self-occupled property cannot exceed 2,00,000 In a year Notes a) Calculation and deduction of interest for the period of pre and post construction, acquisition, etc. is same as discussed in the case of let out house property b) Assessee shall always have nil income or loss upto 2,00,000 from a property u/s 23(2)(a) In nutshell, treatment of Interest on loan is as under: Nature of Allowable When loan was taken Purpose of loan property (Maximum limit) Self-occupied On or after 01/04/1999 Construction or purchase of house property 2.00,000 Self-occupied On or after 01/04/1999 For Repairs of house property 30,000 Self-occupled Before 01/04/1999 Construction or purchase of house property 30,000 Self-occupled Before 01/04/1999 For Repairs of house property 330,000 Let out Any time Construction or purchase of house property No maximum limit 1 Subject to other two other conditions. If other two conditions are not fulfilled, then maximum limit is restricted to 30,000 2 Including interest for pre-construction period. f40 ILLUSTRATION 13 Sri Jayram has a house property used for own residence for 9 months and for remaining 3 months of the previous year, it was unused Gross Municipal value of the property 6,00,000 p.a. Fair Rent 5,00,000, Standard Rent 4,00,000. He incurred repair expenditure of 10,000 & paid municipal tax 5,000 during the year. Compute income from house property in the following cases for the A.Y. 2019-20 1 He borrowed ? 1,00,000 @ 12% (simple interest) on 17/8/1998 for purchase of the house property and such amount as well as interest is still unpaid. 2 3 4 He borrowed 10,00,000 @ 12% (simple interest) on 17/8/1998 for purchase of the house property and such amount as well as interest is still unpaid. He borrowed 5,00,000 @ 12% (simple interest) on 17/8/1999 for construction of the house property, construction of which was completed on 31/3/2000 and such amount is still unpaid. He borrowed 720,00,000 @ 18% (simple interest) on 17/8/1999 for construction of the house property, construction of which was completed on 31/3/2000 and such amount is still unpaid. He borrowed 1,80,000 @ 15% on 1/4/1998 and further borrowed 10,00.000 @ 10% on 17/8/1999 for construction of the house property and such amount is still unpaid. Construction completed on 1/2/2000 He borrowed 5,00,000 @ 12% on 1/4/2001 for repairs of the house property He borrowed 71,80,000 @ 15% on 1/4/1998 and further borrowed 20,00,000 @ 14% on 17/8/1999 for construction of the house property and such amount is still unpaid Construction completed on 1/2/2000 5 6. 7