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Deduction Under House Property Head

C.A Akash Gupta (C.A ICWA Final CS Professional) (242 Points)

23 January 2010

Hey I have taken a house loan of RS 550000 in 2005 in which i am paying the installmets of it and taking the benefit for deduction of intrest under jouse property head now i want to take one more loan for the purpose of repair and maintenance can i get the exemption for paying the intrest on that amount including the previous loan amount....

my previous loans intrest is nearly about 30000-40000 every year hence it is not crossing the limit of 150000

and the new loan for repair and maintenance the amount of intrest on that amount is between 25000-30000 hence it is not crossing the limit of 30000 as per law so plz tell me can i also get the deduction for the new loan intrest amount in house property head....

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6 Replies

Vikram Bishnoi (Student) (115 Points)
Replied 23 January 2010

yes, u can get deduction of both loan interest, because for repair limit is rs. 30000 and total aggregate deduction is not more than rs. 150000

CA Dhiraj Ramchandani (CA, M. com) (10823 Points)
Replied 23 January 2010

yes, its undoubtedly possible.... go for it....

Bala (Student) (498 Points)
Replied 04 February 2010

It is correct as per law

C.Balaji (Learner) (1867 Points)
Replied 13 February 2010

you can claim the deduction...

C.Balaji (Learner) (1867 Points)
Replied 13 February 2010

But why only 30000 for repairs.....

SRINIVAS SRIRAJ (Chartered Accountant) (130 Points)
Replied 20 February 2010

"24. Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—

(a) a sum equal to thirty per cent of the annual value;

(b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed ²⁴[within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees.........."

In the case of Interest on Loan for the acquisition or construction as indicated in the second proviso to Sec.24(b), the limit is Rs.150000. You can not avail more than Rs.30000/- otherwise. Meaning that the interest on the additional loan may not be eligible for any deduction as the interest on borrowals has already exceeded Rs.30000.

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