Rebate on home loan interest

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 Hi,

I am a salaried employee.

If I own 2 homes, & 1 (Self Occupied home) loan is closed June 2012 Then can I:-

- Claim interest (Rs 4410/-) & principal(Rs 147180/-) in my Salary Return.

- Can I claim interest on ACTUAL basis for the other Home Loan?

- Do i need to submit any documents to IT for claiming the Interest on ACTUAL basis for the Second Home Loan?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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17 September 2012 1) yes, you have to claim.
2) Actual basis means actually interest debited to the loan by the bank. Is it yes, then you have to claim. In case as per your opinion Actual basis means actually paid by you then not acceptable because as per IT act interest u/s 24(b) allowed on accrual basis not on payment basis in case you paid excess amount than interest charged for the period then the excess amount than interest would be automatically adjusted to the principle amount.

3) No documents required to submit to IT but you keep such documents for future reference and have to produce to AO in case of requirement by him at any time.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

17 September 2012 1) In such case,this being SELF OCCUPIED property for closed Loan Actual interest Debited was 4410/- & actual principal repaid till closure was 147,180/-then entire amount (4410+147180) of this loan wud b considered for rebate?
2) Also other being let out property in addition to above separateely i can claim Interest debited to the a/c without any limit?
3) Repaid Principal on the let out property can it be considwered for rebate?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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17 September 2012 1) Rs.4410 comes under section 24(b) i.e deductable from the house property income and Rs.147180 comes under section 80C which is maximum limit of Rs.100000

2) Yes, for the let out property in addition to the above 1 rebate you claim separately with out any limit u/s 24(b) because it is let out property for let out property no limit for section 24(b).

3) Yes, Repaid principal on the let out property also consider for rebate but under section 80C only i.e maximum limit of Rs.100000

OM SAI SRI SAI JAI JAI SAI

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