Interest deductible u/s 24 b
This query is : Resolved
charudatta
(Querist)
20 February 2009
If an assessee bought 2 houses & borrowed two different loans. If he fulfills all the conditions laid down u/s 24b for claiming deduction upto Rs.150000/-, how much deductions shall be allowed to him for FY against Interest on borrowed loan? (Rs.150000/- or Rs.300000/-)
CA. B.SRINIVASULU
(Expert)
20 February 2009
It depends on house is being self occupied or given on rent. For self occupied house the limit is Rs.150000/- and for house given on rent he can claim full deduction.
To the contrary if he is occupying both the houses, then he is elibible for only 150000 put together for both the loans.
To the contrary if he is occupying both the houses, then he is elibible for only 150000 put together for both the loans.
20 February 2009
https://www.taxworry.com/2007/08/can-you-claim-deduction-on-home-loan.html. Pl read an identical issue hosted in the site given herein.
K V Subba Rao
(Expert)
21 February 2009
"Where the person occupied more than one house for his own residential purpose, only one house (according to his own choice)is treated as self-occupied and all other houses will be "deemed to be let out" (Source: Para 40 of 31st edition of Singhania's Direct Taxes Ready Reckoner)
So if the assessee has obtained loans for two houses, he will be entitled to treat only one as self-occupied and claim interest for such house upto Rs 150,000.
For the second house, he should return rental income for which he may perhaps adopt municpal valuation for property tax assessment and claim interest for the second house to the full extent
This view is on the assumption that he is not owning any other house (except the two under question) or not claiming HRA benefit for any house taken by him on rent for self-residence
So if the assessee has obtained loans for two houses, he will be entitled to treat only one as self-occupied and claim interest for such house upto Rs 150,000.
For the second house, he should return rental income for which he may perhaps adopt municpal valuation for property tax assessment and claim interest for the second house to the full extent
This view is on the assumption that he is not owning any other house (except the two under question) or not claiming HRA benefit for any house taken by him on rent for self-residence
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Equity Share Sale and Purchase
- Wrong CMPo8 file
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Whether output tax is taken credit by purchaser
- Number of years as per AS amortisation of Goodwill
- Additional trade name
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
