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.
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/-
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.
CAclubindia
