text: ARTICLE - Condition for Deduction of Interest on Home loan
  Condition for Deduction of Interest on Home loan
  Posted @ January 21, 2016, 7:20 am under (Payroll Outsourcing & Taxation)
  Payroll Article:
  CBDT CIRCULAR NO : 20/2015 Dated the 2nd December, 2015 lays down following conditions for Deduction of Interest on Borrowed Capital for Computation of Income from House Property [Section 24(b)] by an employer:
  The quantum of deduction allowed is Rs. 2,00,000/- (w. e. f. AY 2015-16)
  The acquisition or construction of the house should be completed within 3 years from the end of the FY in which the capital was borrowed. Hence, it is necessary for the DDO to have the completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee.
  Thus employer can take into account deduction of interest on housing loan for only one self occupied property, while computing the taxable income of an employee.