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House Property tax

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This query is : Resolved

Sorabh Gupta (Querist)

16 February 2011 I already have possession on one flat for which i am claiming housing loan interest and principal payment deductions.

Now in March 2011 i have to get possession of my second flat and for this flat i am already paying EMI since 2007.I am aware that for second flat i have to calculate house property income as deemed to be let out property but question is rental income would be for one month i.e March 11 and against only one month rental income can i claim full 2010-11 year interest payment as deduction from rental income? or i would need to prorate the interest deduction also?

Please advice

Thanks in advnace

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

16 February 2011 In the year of possession you can claim full interest amount of the Financial year.
Suppose Interest paid by you from Apr 10 to Feb 11 is 120000/- .
On 1st March You get possession and let out the flat.
Interest of March is say 10000/-
You can claim 130000/ interest U/s 24.

If you have paid any interest in the FY 2009-10, or earlier. It will be totalled up and 1/5 th of it will also be available to you for deduction. This is extra with current year's Interest.

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