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Tejas Chokshi | Answer |Ask -Follow

Tax Expert - Answered on Jun 14, 2023

CA Tejas Chokshi has over 20 years of experience in financial planning, income tax planning, strategic and risk advisory, banking and financial products and accounting and auditing.
He is an information system auditor, a forensic auditor and concurrent bank auditor.
Chokshi, who has a master’s degree in management, audit and accounting from Gujarat University, has completed his CA from the Institute of Chartered Accountants of India.... more

Question by Anil on Jun 03, 2023Hindi

Money

My daughter's CTC is Rs. 18 L approx. She wants to buy a vacant residential plot by availing a bank loan. House on this plot will be constructed at a future date and not immediately. Will she be able to avail income tax benefits on interest paid u/s 24 of the income tax act on repayment of loan/interest. She files her IT Return under old regime of tax.

Ans: Under the Income Tax Act, Section 24 allows for the deduction of interest on housing loans from the income chargeable under the head "Income from House Property." However, it is important to note that Section 24(b) of the Income Tax Act provides specific conditions for claiming the deduction on interest paid on a housing loan.

In the case of a vacant residential plot, where construction has not yet commenced, the interest paid on the loan would not be eligible for deduction under Section 24(b) of the Income Tax Act. The deduction for interest on housing loans can only be claimed if the loan is taken for the purpose of acquiring or constructing a house property. Since the loan is being taken for the purchase of a vacant plot, the construction of the house will happen at a future date, and the interest paid until then would not be eligible for the deduction.

Therefore, your daughter may not be able to avail income tax benefits on the interest paid on the loan for the vacant residential plot under Section 24 of the Income Tax Act.

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.

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Hi, I m Thiyagarajan. I m 52 years old. I hv applied education loan of 20 lakhs for my son's higher education in foreign country. I m the co applicant. Can I avail the income tax benefit for the interest payable for the loan

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Hi Sir, I am retired and 63 years old. Having 50 lacs in equity.1.5 cr MF, 25 lacs in SCSS.expected landproperty sale of 4.5 cr also having own house and no education or marriage expenses of children. Medical insurance of 10 lack for me and wife. However intended to buy a residential property of 3 cr to get relax from capital gain post selling the land. And same will be given to daughter later. Need monthly expenses of 1.25 lack. Since market is too volatile. Kindly suggest way forward.

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My son is working in an multinational energy company. Work culture is very good, salary also good. He did his B.Tech in CSE in the year 2023. He is working as a Software Eng. in the ERP section. My son is interested more coding related job. He has a GATE (2023) score of 581 (Gen cat). My questions are 1) Is it advisable to do M.Tech in CSE using his GATE score? If yes, then which top Colleges can be preferred? 2) Or, will he continue his present job for few more years to gain experience ++ 3) Or, to switch to a new company? Thanks in advance.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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