Deduction of interest on housing loan

Tax queries 3595 views 5 replies

Satish Parab

Business

43 Points Posted on 26 September 2008

Hi,

I want to know, how to calculate deduction of interest on housing loan.

Person A is the Resident indian Purchased 2 House in Mumbai on 01/Apr/2005 , and both the properties are financed by bank.

property 1. He is using this property for self-occupation. Value of property is Rs.50,00,000 and he has paid Rs.2,00,000 Interest for year.

property 2. He has let out this property for Rs 20,000 pm and he has paid Rs. 3,00,000 interest for the year. he has paid Rs.25,000 as muncipal tax .

Please tell me how to Calculate his income on house property assuming he has Rs. 30,00,000 income from Salary for 2007-2008

Thanks and regards,

Satish

Replies (5)

vijaykumar

Student

49 Points Posted on 26 September 2008

Self occupied house there is a restriction for Rs. 1,50,000/= shall be allowed.

For let out property there is no restriction full amount for interst paid shall be allowed.

Municipal tax shall be allowed only for letout property, after deduction of MT only 30 % repairs should be taken

Satish Parab

Business

43 Points Posted on 26 September 2008

Originally posted by :vijaykumar
"	Self occupied house there is a restriction for Rs. 1,50,000/= shall be allowed. For let out property there is no restriction full amount for interst paid shall be allowed. Municipal tax shall be allowed only for letout property, after deduction of MT only 30 % repairs should be taken	"

Thanks for the reply. Can I know the respective sections under which this is specified.

Satish

CA.PARAMASHIVA T

Working

23 Points Posted on 06 June 2009

Originally posted by :Satish Parab

Hi,

I want to know, how to calculate deduction of interest on housing loan.

Person A is the Resident indian Purchased 2 House in Mumbai on 01/Apr/2005 , and both the properties are financed by bank.

property 1. He is using this property for self-occupation. Value of property is Rs.50,00,000 and he has paid Rs.2,00,000 Interest for year.

property 2. He has let out this property for Rs 20,000 pm and he has paid Rs. 3,00,000 interest for the year. he has paid Rs.25,000 as muncipal tax .

Please tell me how to Calculate his income on house property assuming he has Rs. 30,00,000 income from Salary for 2007-2008
Thanks and regards,
Satish

Deduction u/s 24 on interest on housing loan is allowed - any amount of interest paid on borrowed money with out any limt if it is let out and rental income is declared. After all deduction if net loss under the housing property can be set out with your salary income and as a result of that you can claim the refund if TDS is deducted on your salary income.

CA MuKesH VarMa

24 Points Posted on 27 July 2009

kindly check the below link

https://in.answers.yahoo.com/question/index?qid=20070803191224AA7DvkF

CA Dhiraj Ramchandani

CA M. com

10823 Points Posted on 27 July 2009

Originally posted by :Satish Parab
"	Originally posted by :vijaykumar hiiii its section 24 Self occupied house there is a restriction for Rs. 1,50,000/= shall be allowed. For let out property there is no restriction full amount for interst paid shall be allowed. Municipal tax shall be allowed only for letout property, after deduction of MT only 30 % repairs should be taken " Thanks for the reply. Can I know the respective sections under which this is specified. Satish	"