Interest on Housing Loan

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Maria Sheela (Querist)

22 May 2008 Can an individual claim exemption w.r.t. Housing Loan if he has taken 2 housing loans with 2 different banks for constructing 2 different houses. Is he eligible for exemption?
One house is self occupied and the otherone is let out..

Please clarify..

CA. Vineet Grover

CA. Vineet Grover (Expert)

22 May 2008 Hi Maria,

You may claim interest on housing loan u/s 24b upto maximum of Rs.150000.

Similarly, you may claim repayment of housing loan u/s 80C restricted to Rs.100000

Computation of income on House Property as per the provisions of the Income Tax.

Rgds/
Vineet

Maria Sheela

Maria Sheela (Querist)

22 May 2008 Hi Vineet,

Thanks for answer...But I'm still not clear on this..By your answer I understand
that any individual can avail in 2 Banks is it??
Correct me if im wrong..

Regards,
Maria

SANDEEP AGGARWAL

SANDEEP AGGARWAL (Expert)

22 May 2008 Hi maria,
For Second house which is let out you can claim interest on loan without any limit. Only thing is that annual rental value for that house will be actual rent received or if it is not let out then fair rental value (i.e. municipal value)will be taken as Gross Annual Value.

Regards,
Sandeep Aggarwal

Maria Sheela

Maria Sheela (Querist)

23 May 2008 Hi All,

How many Housing Loans can an individual go for & claim exemption?

Regards,
Maria

Maria Sheela

Maria Sheela (Querist)

23 May 2008 Hi All,

How many Housing Loans can an individual go for & claim exemption?

Regards,
Maria

R.V.RAO

R.V.RAO (Expert)

23 May 2008 for INTEREST CLAIM AS DEDUCTION UNDER SEC 24,THERE IS NO RESTRICTION .YOU CAN CLAIM DEDUCTION FOR TWO HOUSES.
BUT HOUSING LOAN PRINCIPAL DEDUCTION UNDER SEC 80 C , IS RESTRICTED TO ONE HOUSE AS THE WORDING USED IN SEC 80 C IS
" A RESIDENTIAL PROPERTY " .
R.V.RAO

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