Income Tax Deductions on Home Improvements, if any?

Hi,

One employee query.

Can house renovation be part of income tax deduction? if eligible, which would be the one?

Thanks.

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No House Renovation is not part of Income Tax Deduction

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Hi @MadhuP1

For self-occupied house , if you have taken a home loan for renovation , you can claim deductions on the interest component under section of Income Tax.

The interest that is payable on the home improvement loan is however tax deductible for up to Rs 30,000 p.a

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Is this 30000 PA part of 2 lac cap under interest on housing loan.

Regards,

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Hi @Shwetha

The combined and absolute limit for the tax deduction (for both) interest paid on the housing loans as well as the home improvement loan is Rs1,50,000.

For instance if the interest that you are paying per year on the home loan is Rs. 1,20,000 or less, the maximum benefit for of Rs. 30,00 on home improvement will be applicable!

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Thanks Dinesh.

Regards,

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