home loan interest tax benefit query

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Query in this case - "I can claim interest paid before possession year in five equal installments starting from possession year. Say, I paid 1 lakh interest before 2013-14, then I can add 20,000 interest claim into 2013-14 claim and similarly for next four years." Suppose i am claiming 1,50,000 of interest of home loan, does it mean the 20000 amount i will claim will be apart from this 150000 making total tax free to 150000+20000? or 150000 is the upper cap which includes 20000?

1 Answers

1.5 lakh would be upper limit for deduction for self occupied property for FY 2013-14. In case rental income(notional or actual) is shown on property, then there is no upper limit.

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