Housing loan
This query is : Resolved
04 March 2013
Mr. A has purchased a second house on Housing Loan. He is Enjoying the deduction u/s 24 of Rs. 50,000/- will he entitled for balance Rs. 100,000 interest on second house u/s. 24?
04 March 2013
yes,
there is no prob in sec 24
he can claim 1,50,000
there is no prob in sec 24
he can claim 1,50,000
04 March 2013
Mr. A at his option needs to declare one property as self occupied and he can claim exemption for interest up to 150,000.
Second property would be treated as deemed let out property and he require to declare notional rental income, in this case there is no limit for house loan interest.
Second property would be treated as deemed let out property and he require to declare notional rental income, in this case there is no limit for house loan interest.
04 March 2013
According to the section 24(b) for the self occupied property there is maximum limit to claim deduction of interest on housing loan is Rs.150000 per one property and for let out property there is no restruction on claiming of interest on housing loan as deduction i.e unlimited.
As well as according to the income tax act any assessee has more than one house property and no property is not given to let out then we have to assume deemed let out and offer rent income as per the municipal value of rent. So above said provision also applicable for deemed let out properties(i.e claiming of unlimited interest on housing loan as deduction u/s 24(b)).
Now for your case. According to your question you i understand you have 2 house properties and your doubt is the exemption limit of interest on loan upto 150000 can be partly claim to one property and other part can claim to another property.
According to the above explanation by me it is cleared the exemption limit is u/s 24(b) is for each property not aggregate of assessee. As well as above provision in case if you not let out second property you have to assume it deemed let out and offer income of rent as per Municipal value and claim interest on housing loan u/s 24(b) unlimited which is incurred on the house loan taken for the purpose of second house. and for the first house i.e for self occupied house you can claim upto Rs.150000 u/s 24(b) for the interest on housing loan taken for that house.
In case both houses are self occupied then at the choice of you one house you have to deemed let out.
Note: Interest incurred on the housing loan shall be consider for the deduction from such house property income on which you such loan availed. I.e loan for one house but interest exemption for another house doesn't available.
Are you understand otherwise write your doubts anything else.
OM SAI SRI SAI JAI JAI SAI
As well as according to the income tax act any assessee has more than one house property and no property is not given to let out then we have to assume deemed let out and offer rent income as per the municipal value of rent. So above said provision also applicable for deemed let out properties(i.e claiming of unlimited interest on housing loan as deduction u/s 24(b)).
Now for your case. According to your question you i understand you have 2 house properties and your doubt is the exemption limit of interest on loan upto 150000 can be partly claim to one property and other part can claim to another property.
According to the above explanation by me it is cleared the exemption limit is u/s 24(b) is for each property not aggregate of assessee. As well as above provision in case if you not let out second property you have to assume it deemed let out and offer income of rent as per Municipal value and claim interest on housing loan u/s 24(b) unlimited which is incurred on the house loan taken for the purpose of second house. and for the first house i.e for self occupied house you can claim upto Rs.150000 u/s 24(b) for the interest on housing loan taken for that house.
In case both houses are self occupied then at the choice of you one house you have to deemed let out.
Note: Interest incurred on the housing loan shall be consider for the deduction from such house property income on which you such loan availed. I.e loan for one house but interest exemption for another house doesn't available.
Are you understand otherwise write your doubts anything else.
OM SAI SRI SAI JAI JAI SAI
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Form 121-contradictory opinions
- TDS on Purchase of Immovable Property by NRI from NRI
- Is Personal Guarantee of Director is Compulsory in case of loan to company ??
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
