1 sop & 1 dlop int =180000, 150000 ? or 180000 ?

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This query is : Resolved

CA Abhishek Singh (Querist)

01 June 2012 Hello everyone,

one of our client has paid interest on housing loan rs.50000 on deemed lop and 130000 on SOP.

How much deduction will he get ?

Abhinav Pandey

Abhinav Pandey (Expert)

02 June 2012 Dear Please Elaborate LOP and SOP. As much i a getting you are asking your one client is having two properties and one is owned by him and second is deemed to be let out property.

Sec 24(b) allows a maximum deduction of 1.5 lakh on intt on loan taken fpr purchase/ construction of self occuoied property. Besides the principal repayment of Rs 1 L is also allowed under 80 C

For let out or deemed let out property whatever amount as interest paid by him will be allowed as deduction.

So all the amount paid as interest in your case will be allowed. but limit of 1.5 L will be applicable on SOP only.

I hope i have cleared you. If not then you may come back

Nikhil Kothari

Nikhil Kothari (Expert)

02 June 2012 What you client has paid and shown in books of account is correct. But in case of SOP Rs.130000 is subject to fulfillment of rules of Income Tax Act, other wise it is limited to Rs.30000 only.

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