Home Loan Interest

Tax planning 735 views 4 replies

Narendra

Manager

24 Points Posted on 05 February 2010

Hi,

I am salaried and i am taking benefit of Priciple & Interest of my home loan. I bought new house and how i can claim for the Second home loan Priciple & Interest becuase Only one house property can be self occupied and other house property owned by the employee shall be deemed to be let out and notional rent shall be considered as income
and if actually let out actual rent to be taken as income.

Please tell me the procedure for claiming this.

Thanks,

Narendra Shere

Replies (4)

Amir

Learner

4016 Points Posted on 05 February 2010

Dear Narendra,

No procedures is required, you are rite that in case of more than 2 self occupied properties, one has to be treated as Deemed let out & expected rent is taxable , but even then benefit of interest & principal is allowed

One more thing if a property is deemed to be let out then interest in excess of Rs 1.50 lacs be claimed..

Once it is actually let out then also benefit of interest & principal be claimed.

RD Verma

CA. Student

314 Points Posted on 05 February 2010

I agree with Amir

C.Balaji

Learner

1867 Points Posted on 05 February 2010

Mr.Amir brother is always right and this time also he is right....

The one with greater GAV can be taken as Self occupied and other as let out.....

incase of let out the interest can be claimed inexcess of Rs.150000/- but incase of self occupied only 150000 that to if construction is complete within 3 years from the end of year of loan or it would be only 30000...