Interest on H/L

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This query is : Resolved

SHALINI JAIN (Querist)

22 May 2008 Dear Sir,
In a querry raised by maria just today regarding interest on two H/L , out of which one house will be self occupied and the other rented, why interest of only 150000 will be allowed. I think that in case of self occupied house, the individual can claim max H/L interest of Rs 150000 and in case of house which is let out , the amount of interest which accrues will be allowed.So I think the individual can claim the benefit of interest on both the H/ Loans. Yes principal repayment will be restricted to Rs 100000 u/s 80C. Sir please clarify whether I am right or wrong.

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)

22 May 2008 Dear Shalini
You are right but only thing is that annual value will be taken as nill only for self occupied property and for ohter house it should be rented houseotherwise fair rental value will be taken as annual rental value.

Regards,
Sandeep Aggarwal

R.V.RAO

R.V.RAO (Expert)

22 May 2008 BOTH THE POINTS RAISED BY THE QUERIEST ON INT. ON HOUSING LOAN AND PRINCIPAL DEDUCTION ARE ANSWERED IN AFFIRMATIVE.SHE IS JUST RGHRT IN WHAT SHE SAID.
THE ISSUES RAISED BY SRI SANDEEP NEEDS TO BE KEPT IN MIND,WHILE CLAIMING THE DEDUCTIONS.
R.V.RAO

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