Home loan interest exemption limit for two purchased property

For rented property there is no limit on the interset for home loan.  Interset actually paid/accrued during the F.Y. can be taken as deduction.

Only for SOP interest limit is 1.50lacs.

Hi

I have 2 properties, one in my name, one in my wifes name.

We are buying another property via home loan, which is under construction and deemed to be completed in 2016 dec. I have 3 queries as per this.

Query 1

As far i have read on CA club india, unoccupied property will attract income tax as deemed rented out. However if interest component is higher than rent income, then no income tax is to be paid. Please tell if my understanding is correct.

Query 2

If the interest component is 6 lakhs and rent income is 1.8 lakhs, then can i set off the remaining 4.2 lakhs against my other income? if yes, then under which section and what kind of income head. Can i set off Capital gains from my investments/ stock trading profits against this interest.

Query 3

Please take note that property is under construction, hence no rent income can be shown untill completion, but can interest paid untill completion be claimed/set off?

Originally posted by : piyush jain
	Hi I have 2 properties, one in my name, one in my wifes name. We are buying another property via home loan, which is under construction and deemed to be completed in 2016 dec. I have 3 queries as per this. Query 1 As far i have read on CA club india, unoccupied property will attract income tax as deemed rented out. However if interest component is higher than rent income, then no income tax is to be paid. Please tell if my understanding is correct. Query 2 If the interest component is 6 lakhs and rent income is 1.8 lakhs, then can i set off the remaining 4.2 lakhs against my other income? if yes, then under which section and what kind of income head. Can i set off Capital gains from my investments/ stock trading profits against this interest. Query 3 Please take note that property is under construction, hence no rent income can be shown untill completion, but can interest paid untill completion be claimed/set off?

for query 1

if interest portion is more than the deemed rent income then, it will arise the loss under Income from House property. Meaning thereby no tax.

For query 2

Yes you can set off this with other income. or you have a option to carry forward this to subsequent years. But in subsequent year you can set off this with under same head i.e. house property.

For query 3

since property is under construction so you can not caim for interest. You can claim only after taking the possession. However interest paid before possession can be calimed in 5 years equal proportion.

I hope your query is now cleared.

Dear sir,

Thank you soo much for your reply.

In query 2, Can i set off Capital gains from my investments/ stock trading profits against this interest in same year?

In query 3, the interest paid before possession, can that be set off against any income or house property income only in next 5 years?