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Income tax - interest component of home loan for 2 homes

CA CS Akashdeep Singh (Practicing CA) (1394 Points)

11 June 2012

There is point number 15 in Part A DVAT-04, which requires commodity name and code. But I am unable to find these commodity codes. if anybody know, where these codes are precribed, please inform me.

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 11 June 2012

Where an assessee owns more than one house, then one house of his choice should be considered as SOP and the other one as deemed to be let out. On SOp there is a cap of interest upto 1.5lacs.

as per your details providfed the house at Chennai bears more EMi than the one at Trichy, so I think that the house at chennai shud be considered as let-out, so that you can get the whole interst paid/accrued during the F.Y. as a deduction on your total house property income. The net result for this house may be loss. also for the house at trichy, the maximum interst deduction you can get is upto 1.5lacs. So the total loss on your both houses would get deducted from your gross total income & tax would be levied after deduction of loss from your income.