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saranraj (CA FINAL)     22 November 2019

Carry forward of Self Occupied House Property Loss

An Individual Salaried Employee is having a Self Occupied House Property. He has no other house properties. He is paying 3 lacs per annum toward Principal of Housing loan and 5 lacs towards housing loan interest. How much will be allowed as deduction for the assessee while calculating his taxable income assuming he has no other Chapter VI deductions. 

Will there be carry forward of unadjusted losses allowed to the future periods to set it off against his salary income?

Please clarify.

 5 Replies


kalyan (Employment)     22 November 2019

1) A deduction for Interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act. Therefore, taxpayers can claim a total deduction of Rs 3.5L for interest on homeloan, if they meet the conditions of section 80EEA.

The amount paid as Repayment of Principal Amount of Home Loan by an Individual/HUF is allowed as tax deduction under Section 80C of the Income Tax Act. The maximum tax deduction allowed under Section 80C is Rs. 1,50,000.

In this case, the assessee can claim the deduction

under section 24 is        2,00,000  

under section 80EEA is 1,50,000

under section 80C is     1,50,000 

2) Loss under the head house property to be carried forward for 8 Assessment years and set-off only against "Income from House Property"


1 Like
Kapadia Pravin

Kapadia Pravin   22 November 2019

A maximum of 2 lakhs will be available as deduction towards interest under 24(b).

So there is a loss of Rs 2 lakhs under Income from house property. This loss can be set off under any other head of income in same AY.

Balance loss will be carried forward for future 8 years and can be set off only against income from house property.

saranraj (CA FINAL)     23 November 2019

Deduction under 80EEA is available only to those who took housing loan during FY 2018-19.
Kapadia Pravin

Kapadia Pravin   23 November 2019

80EEA is from FY 2029-2020 relating to AY 2020-2021
1 Like

Ramesh (Service)     07 January 2020

I understand that deduction under section 80EEA is one time deduction only currently for FY 19-20 unless it is again proposed in budget for FY 20-21.

Pl. advise.


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