Deduction u/s 24(b)

I am a CA Inter Student

I had learn't that the maximum limit of deduction under section 24(b) for Self Occupied House Property (maximum 2) is Rs. 30000. However assessee can claim a deduction of 2,00,000 if three conditions are satisfied:

1. Loan must be for purchase or construction of HP

2. Loan must have been taken before 1.4.1999

3. If loan is for construction then it must have been completed within 5 years from the end of f.y. in which loan was taken.

My doubt is that, this limit for 30000 or 200000 is for 1 HP or for both HP. Suppose I took a loan of Rs. 20000 for repairing one and Rs. 100000 for purchasing another. So how much exemption I will get?  

 

Replies (5)
Quick Summary
This discussion clarifies the deduction limits under Section 24(b) for self-occupied house properties. While the general limit is Rs. 30,000, a Rs. 2,00,000 deduction is possible if specific conditions regarding the loan for purchase or construction are met. The query also addresses how these limits apply when an individual owns two properties, with clarification that one can be treated as self-occupied and the other deemed let-out, allowing interest deduction for both, subject to overall limitations.

If there is two houses then you have to select one self occupied and other deemed let out, and yes you can claim deduction of Interest for both the houses.
Sir, in ICAI mat it's written that at max we can have 2 SOPs and after that 3rd will be treated as DLOP ( Budget 2019)
Yes. That's right. it's 2 SOPs
So how to solve the problem?
Now with the amendment, one may not be able to claim the 2nd house as deemed let-out and the overall interest deduction u/s 24 for both the self-occupied houses will be restricted to Rs. 2 lakh resulting in lower losses under the head house property.

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