INTEREST ON HOUSE PROPERTY

This query is : Resolved

seema singla (Querist)
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21 July 2008 An Individual has a self occupied property on which he is getting deduction under section 24 and 80C. The intt left is very nominal. Now he want to purchase another property (deemed to be let out) by availing a new home loan from some bank. He wants to get intt deduction u/s 24 and 80C for the new home loan. Is it possible? I want to know whether he can get deduction u/s 24 and 80C for the intt of the Ist house or for the IInd house or for both.

CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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21 July 2008 He can get deduction for intt and rapayment u/s 24 and 80C respectively for both the houses.

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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21 July 2008 There is no bar U/s 80C that repayment of Installments of Housing Loan will not be allowed on purchase of 2nd house. Existence of 1st house doesnot disqualify the Repayment of Housing loan from being deducted U/s 80C.

CA PRAMOD SARAOGI

CA PRAMOD SARAOGI (Expert)
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21 July 2008 so far as interest on borrowed Capital is concerned, Interest U/s 24(b) cannot be denied on the ground that interest was paid on the purchase of 2nd house since in section 24(b) there is no bar on allowability of Interest on borrowed capital for 2nd house. In other words even if there is already a house belonging to a person, he can claim interest on the 2nd house.