Interest on borrowings

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This query is : Resolved

Neha. (Querist)

23 November 2014 one has property situated in location pune against it he is already claiming housing loan interest benefit. now new property in which he is going to invest in Mumbai location by taking loan is under construction and after 4 years he is going to acquire possesssion..how will the new housing loan benefit ? can after 4 years he claim benefit against both the properties?how?

Amol S Joglekar

Amol S Joglekar (Expert)

23 November 2014 One self occupied property : The loss is restricted.
For the rented property. no such restriction is given. So The other property can be given on rent.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

23 November 2014 Pre acquisition interest of Mumbai property can be equally deducted in the year of acquisition and succeeding four years along with the interest payable for the post acquisition year's.
Can claim interest benefit for both houses after 4 years. Pune property remains as 'self occupied' with an interest cap of Rs. 30,000 or Rs,1,50,000 ,as the case may be ,while the Mumbai property becomes'deemed to be let out' with an eligibility to claim interest, as said above ,without cap.

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