The Hindu Business Line : On loans from five sources and five kids to grow

I HAVE borrowed from five institutions for constructing a building. The aggregate interest is less than Rs 1.5 lakh. Will they all qualify for deduction? -- P. Sankaranarayanan, Kochi

Yes. Section 24 does not rule out borrowing from multiple institutions.

If it is a self-occupied residential house whose annual value is taken at `nil', the maximum interest that you can claim is Rs 1.5 lakh per annum subject to conditions.

If it is a house whose annual value is not to be taken as `nil', then there is no cap on interest that one can claim.

Two out of five

WE have five children. All of them are undergoing education. Both of us are employed. Can we claim tax rebate in respect of tuition fee paid for all of them? -- Ananthachayanam Seshadhri, e-mail

There are quite a few restrictions imposed by Section 88. The education must have been imparted in India, and it must be a full-time education.

The number of children an individual is entitled to claim rebate on is restricted to two. In the event, tuition fee on one child of yours will fall by the wayside.

The maximum qualifying amount of fee is further restricted to Rs 12,000 per child.

Therefore, each of you would get rebate on a maximum of Rs 24,000 assuming further that this is within the ceiling of Rs 70,000 imposed by the section.

RRB vis-à-vis securitisation

CAN regional rural banks (RRBs) established under the Regional Rural Banks Act, 1976 proceed against the defaulting borrowers under the Securitisation Act? -- Venkateshwaralu, e-mail

While banking companies, State Bank of India and corresponding banks (the nationalised ones) are specifically covered, RRBs cannot proceed unless they are notified by the Central Government under Section 2(1)(c) of the Securitisation Act.

(ASK! Send in your queries on accounting, auditing, corporate law and taxation to ask@thehindu.co.in)

S. Murlidharan

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