Interest on Borrowed Capital and Income from House Property

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This query is : Resolved

Vivek Handa (Querist)

20 June 2009 Dear all

I own two different properties which are let out for the whole year and I am receiving rent. To construct these properties I raised two different loans from banks and have paid Rs 138000/- and Rs 217000/- as interest.
My question is: whether I will get the whole amount of interest paid by me as deduction or only Rs 150000/- ceiling shall be applicable.
And also whether I will be eligible to claim deduction u/s 80C for the payment of the principal part of the loan

Thanks in advance

CA.Nikhil Gupta

CA.Nikhil Gupta (Expert)

20 June 2009 There is no limit to claim the interest repayment in case of let out house, u can claim the actual repayment. Limit of 1.5 lacs is for self occupied house.

And, you are eligible to claim the principal repayment u/s 80 c.

Ratan Sharma

Ratan Sharma (Expert)

20 June 2009 Hi,
Only one residential house can be considered for availing deduction of interest u/s. 24. As you are owning 2 residential properties u can opt for any house as a self occupied property. U can claim the deduction u/s. 80C.