Interest and principle deduction of two houses

This query is : Resolved

Harsha (Querist)
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01 April 2016 Hi,,
Please tell me, i have two houses one is SOP and other one self occupied. I want to claim the interest and principle payment of both the houses. As per my knowledge i can the interest under SOP and let out. But what about principle repayment of both the houses. Can i take the deductioon of both principle repayment?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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01 April 2016 Firstly your both the house cannot be SOP

One has to be SOP (Self Occupied) & Other has to be LO (Let out) or DLO (Deemed to be Let Out)

since in your case (assuming) it is DLO

House No.1 SOP & House No. 2 DLO

Computation will be done in the following manner

PARTICULARS H.NO.1(SOP) H.NO.2(DLO)
Gross Annual Rent NIL XXXX
Less: Muncipal Taxes NIL XXX
Net Annual Rent NIL XXXX

Less: 30% of NAV NIL XXX
Interest XXX (subject to limit prescribed) XXX (no limit)
Income under HP -XXX (Loss) XXXX (can be profit or loss)