Home loan interest exempted from taxable income

 

I have purchased a flat on home loan and given it on rent. Supposing that interest paid on loan (in one FY), is Rs 3.50 Lakhs and rental income is Rs 1.20 Lakhs, how much interest will be “exempted” in calculation of taxable income? (Will it be Rs 1.50 Lakhs, Rs 2.70 Lakhs or Rs 3.50 Lakhs.)

Replies (10)

IT WILL BE 3.5 LACS

In case of Let out house,whole amount of interest can be deducted from the house property income.

In case of let out property , the limit of Rs1.5 lac (applicale in Self occupied) is not applicable so you can get full deduction of interest Rs3.5 lacs

since the house is let for rent, the whole interest amount paid will be claimed, provided the housing loan should be received from any public financial institution or from any nationalised banks.

 

You will get the deduction of Rs. 3.5 Lacs

You will get the deduction of Rs. 3.5 Lacs

In case of let out House Property  the limit of Rs.150000/- will not be applicable.

its 3.5 lacs

The Deduction of Rs. 3.50 Lacs Will be Applicable as the property is let out and Not Self Occupied.

In the above case, will the deductions in respect of standard deduction (30% of Annual Value) and Municipal taxes paid (assuming it to be Rs.10000) be applicable, since the interest on housing loan itself exceeds the rental income? And such negative amount is eligible for set-off against income from business/ profession?

 

Please Clarify..

 

Thanks in Advance

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