GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Not to be allowed on deduction
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Be allowed as deduction
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Be allowed as deduction if the tax is deducted at source
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None of these
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Detailed explanation-1: -Case Laws. Interest on borrowed money which is payable outside India shall not be allowed as deduction under section 24(b), unless the tax on the same has been paid or deducted at source and in respect of which there is no person in India, who may be treated as an agent of the recipient for such purpose.
Detailed explanation-2: -Section 24 provides for deduction for interest on a home loan of up to Rs 2, 00, 000 in a financial year. The assessee can claim a deduction up to Rs 2 lakh while computing his/ her total taxable income under the head of house property.
Detailed explanation-3: -Amount of deduction Therefore, taxpayers can claim a total deduction of Rs 3.5 lakh for interest on a home loan, if they meet the conditions of Section 80EEA.