Income from house property

This query is : Resolved

Amol Potdar (Querist)
Follow

23 April 2012 Can we claim interest paid on home loan under 80C as well as a expense or deduction while calculating income from house property?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
Follow

23 April 2012 Interest paid on housing loan would be deduct under section 24(b) directly from the ALV with out limit if let out property other wise limit is Rs.1,50,000 even though self occupied property and no ALV. and the standered deduction of 30% on ALV after deduction of the property tax paid by the owner would be deduct as expenses i.e for repairs and the property tax paid by the owner would be deduct and the principle portion of the repayment of the housing loan comes under section 80C.

for example let assume property is let out and the ALV is Rs.240000 p.a and the property tax paid by the owner is Rs.2400 and interest on the housing loan is Rs.200000 p.a paid or accrued and the principle repayment is Rs.20000 p.a

Then the Income from house property

1) as let out property :

ALV Rs.2,40,000
Less: Property tax Rs. 2,400
Balance Rs.2,37,600
Less: section 24 deductions
30% deduction Rs. 71,280
Interest on HL Rs.2,00,000
Income/loss from HP Rs. (33,680)
Less: Principle repayment Rs. 20,000

2) as self occupied property:

ALV Nil
Less:Interest on HL Rs.1,50,000(max limt)
Loss from house propert Rs.(1,50,000)

Less: principle repayment Rs. 20,000

However in the above illustrative principle repayment not deductable because gross total income is loss.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok