Mr. X commenced construction of a residential house intended exclusively for his residence, on 01.11.2019. He raised a loan of ₹ 5,00,000 at 16 percent interest for the purpose of construction on 01.11.2019. Finding that there was an over-run in the cost of construction he raised a further loan of ₹ 8,00,000 at the same rate of interest on 01.10.2020. What is the interest allowable under section 24, assuming that the construction was completed by 31.03.2021
A. ₹ 33,333
B. ₹ 80,000
C. ₹ 1,50,667
D. ₹ 1,77,333
Answer:C
Mr. X commenced construction of a residential house intended exclusively for his residence, on 01.11.2019. He raised a loan of ₹ 5,00,000 at 16 percent interest for the purpose of construction on 01.11.2019. Finding that there was an over-run in the cost of construction he raised a further loan of ₹ 8,00,000 at the same rate of interest on 01.10.2020. What is the interest allowable under section 24, assuming that the construction was completed by 31.03.2021
A. ₹ 33,333 B. ₹ 80,000 C. ₹ 1,50,667 D. ₹ 1,77,333