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House property income

Sunitha.M (Audit Staff) (24 Points)

11 February 2014

Hi,

An assessee owing a single House Property and he let out the same for rent. He is residing in a rental house due to some personal reasons. Now my question is, the assessee is getting rental income and he wants to claim the deduction U/s.24B interest on Borrowings more than 150000. Whether he can claim the deduction above 1.5lakhs?

Or he has to treat the house as self occupied, show the income and claim the deduction upto Rs.150000?

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3 Replies

sreekanth.ca (CA Job) (39 Points)
Replied 11 February 2014

Since your client is showing Rental Income, he can claim Interest 'up to any limit'. There is no cap in this

Refer section analysis of section 23 , which gives the mode of calculating house property income https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-23

Also you may refer section 24 on https://www.exploreincometax.com/Indian-Income-tax-Act-1961/Section-24

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Mihir (Wealth Manager) (5293 Points)
Replied 11 February 2014

If interest on home loan is payable on a house that is let out, then the assessee may claim deduction u/s 24 on the actual interest paid.

Rohit Gupta (Audit Executive) (271 Points)
Replied 11 February 2014

Dear Mihir, In case the property is let out any amount of interest paid is allowable under section 24(b). I know this provision but couldn't locate it in Income Tax act. Please provide me the details where it is exactly written in law