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House building loan deduction

ShouvikSen (NA) (42 Points)

14 November 2019

Is a assessee eligible for getting tax benefits for two house building loans (interest and principal) in the same assessment year.

Also in such a situation will a assessee be required to compute income from house property for one house?

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6 Replies

rama krishnan (12234 Points)
Replied 14 November 2019

1. yes, but only 2 lacs rupees can be set-off against income under other heads u/s.24(b) for self occupied property or under 71(3A) for let out property
2. if you're availing benefits on housing loans for two house properties, then computation has to be made for both house properties

RAJA P M ("Do the Right Thing...!!!") (127072 Points)
Replied 15 November 2019

Yes... I agreed with Mr Ramakrishnan view...

@ Mr Shouviksen.,

You can with (Mr Ramakrishnan reply) Self & Rented house property..

Kapadia Pravin (17249 Points)
Replied 15 November 2019

I agree with Mr. Ramakrishnan view with two corrections -

a) The section ought to be 23(3)(a) and not 71(3A)

b) Words "two houses" has been substituted for one house w.e.f. 1-4-2020. for SOP purposes so as to be NIL income.

I hope you will concur to this.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 15 November 2019

Section 23(3)(a) is in respect of self occupied property that is, before 01.04.2020, if a person has 2 houses for self occupation then one house at the option of assessee can be declared as self occupied and the second house property needs to be declared as deemed let out. 71(3A) is in respect of threshold limit for setting off loss from house property from another head of income.

Kapadia Pravin (17249 Points)
Replied 16 November 2019

Somewhere there is a slip.
I now agree that you referred to 71(3A) in so far as set off is concerned .

Upto 31-3-2019 that is upto AY 2019-2020, under 23(3)(a) which is for let out , out of two , one used to be deemed let out.

But now from 1-4-2019 that is from AY 2020-2021 assessee can claim SOP status for two properties and Nil income. under 23(2)(a).

However as you rightly said maximum loss under IFHP upto Rs 2 lakhs will be able to be set off against another head of income under 71(3A)