Interest on Housing Loan and for rented property-Ay 2019-20

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This discussion clarifies the deductibility of housing loan interest and principal payments for a property that has been rented out in AY 2019-20. The expert confirms that these benefits can still be claimed. The advice is to declare the rental income under 'Income from House Property'. However, a user encountered an issue with ITR-1 freezing options when selecting 'let out property' or 'rental property', preventing the entry of interest paid. The solution suggested is to select the 'rental property' option within ITR-1, which should allow for the interest amount to be entered.

ST SHARMA

ST SHARMA (Querist)
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31 July 2020 Dear expert

Brief: For Ay 2018-19- Person have taken Property On housing Loan, Earlier he was taking Benefit of interest paid on Housing Loan u/s 24 and Principle payment under 80C .

Query- In Ay 2019-20, he has rented this property, still paying his housing Loan with interest and principle. Can he get the benefit of such interest and principle payment for ay 2019-20

Where this rented income can shown to income from other sources, or any other treatment.

Thanking you for your valuable time

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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31 July 2020 Yes, he can get the benefit of such interest and principle payment for ay 2019-20. Show the rental income under income from house property.

ST SHARMA

ST SHARMA (Querist)
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01 August 2020 But sir , while we select the option in ITR self occupied property , the option of let out property get freez, so not able to fill the details of rental income.

Pls advice

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2020 Choose option in ITR rental property.

ST SHARMA

ST SHARMA (Querist)
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01 August 2020 thnks for reply sir, but if i select rental property in itr-1 for salary employee..then option for Interest paid on loan for house property get freez, then i am not able to fill the interest amt.
Pls advice

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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01 August 2020 File online ITR 1 it will be allowed.

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