housing loan interest

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This query is : Resolved

Shivani Sharma (Querist)

06 August 2010 If Mr x is having 2 house properties (one self occupied and other vacant) and he has taken housing loan in relation to both house properties. So to avail the benefit of interest of housing loan on both the house properties whether the vacant one will be considered deemed to be let out or anything else???
How the computation will be done??

Aditya Maheshwari

Aditya Maheshwari (Expert)

06 August 2010 The assessee has an option to choose any of the property as Self occupied and the other as deemed to be let out(DLOP).

In case of SOP the maximum interest allowable as deduction will be Rs. 150,000/- and in case of DLOP notional rent would be needed to offer as income and interest of any amount can be claimed as deduction.

So choose whichever one is beneficial to you.

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Manmohan ACA, CS

Manmohan ACA, CS (Expert)

06 August 2010 It is not possible for an assessee to consider a property which is self occupied as DLO.

so don't do if this situation is a part of tax sums of your course.

You have to consider the self occupied property as self occupied and other vacant property as DLO.

however for Practical tax planning (rather TAX EVASION ) swapping can be done by (i.e. treating S/o property as DLO)

further
as said by expert above "In case of SOP the maximum interest allowable as deduction will be Rs. 150,000/- and in case of DLOP notional rent would be needed to offer as income and interest of any amount can be claimed as deduction"

Regards...........!

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