Interest on house building advance-Deduction under section 24(1)(vi) of the Income-tax Act, 1961-Clarification regarding

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..... x Sir, Subject: Interest on house building advance-Deduction under section 24(1)(vi) of the Income-tax Act, 1961-Clarification regarding. I am directed to say that the Board has considered the question whether interest on house building advance taken by the Central Government servants under the House Building Advance Rules of the Ministry of Works Housing can be allowed as deduction whe .....

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..... m for the first Rs. 25,000; (ii) 8% per annum for the next Rs. 25,000, viz., Rs. 25,001 to Rs. 50,000; (iii) 10% per annum for the next Rs. 20,000, viz., Rs. 50,001 to Rs. 70,000. (g) The rates of interest on house building cases sanctioned after 1-6-1981 will be as under:- (i) 7% per annum for advances up to Rs. 25,000; (ii) 81/2% per annu .....

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..... interest which would start running from the date of the drawal of the advance. The interest that accrues is to be calculated annually in terms of rule 6 of the House Building Advance Rules on the balances outstanding on the last day of each month. 5. The above instructions may be brought to the notice of all the Income-tax Officers working in your charge. If any appeals are pending on this point .....

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