Net loss from housing property - set off

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This query is : Resolved

Sudarshan Sen (Querist)

28 July 2009 I am a salaried employee, with a property let out on rent on which I earned an income of Rs.36750 net of 30% deduction and municipal taxes, in FY 2008-09. The interest paid/accrued on housing loan which financed this property was Rs.225900, during the same FY.
Q. Can I set off (-)Rs.189150 (36750 minus 225900)as a loss, against my income from other sources, e.g. Salary, during the year, thereby reducing my overall tax liability?
(My employer has taken the view that deduction of interest paid must be capped at Rs.150000, even though actual interest paid is much higher)

Shall be grateful for a quick guidance as I have to file before 31st July ! Thanks

Sambu Suresh

Sambu Suresh (Expert)

28 July 2009 Yah, since you have the letout property , you are eligible for entire interest of Rs. 189150 and restricted amount of Rs 150000. Rs 150000 is applicable for non let out properties. Since your property is letout , you are eligible for entire interest deduction.

Suresh.sambu
9866198655

Sudarshan Sen

Sudarshan Sen (Querist)

28 July 2009 Thanks, Suresh !

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