Income From House Propety

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Sushant Panigrahi (Querist)
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19 November 2007 Suppose i have two property, one is self occupied and one is let out.
I had taken loan for construction for both the property seply (1.5.2006)
I am paying interest on borrowing capital on both of them
For self occupied property i am paying interest 1,43,000 P.a.
& for let out propety i am paying 1,63,000 P.a
What the deduction can i claim on interest on borrowing capital.

CA. Vineet Grover

CA. Vineet Grover (Expert)
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19 November 2007 Interest on borrowed capital is deductible subject to a maximum limit of Rs.1,50,000/- provided the three conditions are satisfied:
(1) capital is borrowed on or after 1st Apr'99
(2) the acqusition / contruction is completed within 3 years from the ned of the F Y in which the capital is borrowed; and
(3) the said loan is taken for the purpose of acquisition / construction of the house
If the above three conditions are not satisfied then the elibile deduciton shall be restricted to Rs.30000/-

Please note that the deduction shall be restricted to Rs.150000 / Rs.30000 per unit.
Thus for the self occupied house property you shall be eligible to claim interest for Rs.143000/- and for let out house property the claim shall be retricted to Rs.150000/-

Sushant Panigrahi

Sushant Panigrahi (Querist)
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29 November 2007 Thanks for the reply,
But i am still confused, that assessee can claim deduction on both the property or not if he had taken loan seply for both the property.

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