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House property

Tax queries 431 views 2 replies

Rajagopal M S

BPO

52 Points Posted on 13 February 2012

Good day

I have recently (Sep 2011) purchased an old house for which I have taken a housing loan wherein principal is 124248 and interest is 280722 for the current financial year. Since it is an old house I am renovating it for which I have taken a personal loan for which interest is 14841 and principal is 21311 for the current financial year. I am currently staying in my OWN flat for which I am paying property tax of 1410 per annum. The renovation for the purchased house will be completed by the end of this month. The property tax for the purchased house was already paid by the seller till the end of the financial year. I am planning to move out to the purchased house in May.

Can you please help me in computing the house property income for the current financial year.

Regards

Raj

Replies (2)

RAKESH

Almost CA

2199 Points Posted on 13 February 2012

After the renovation u can claim 100000/- of Principal amount under 80-C and interest to the maximum of 30000 can be claimed u/s. 24b as Interest on borrowed capital is allowable as deduction on accrual basis (even if account books are kept on cash basis) if capital is borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the house property