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House Property

28 August 2018

Client having 2 flats both on rent and for service purpose he is living somewhere on rent. Can he take benefit of interest on both the flats as let out.

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12 Replies

Poonam Lohiya (158 Points)
Replied 28 August 2018

The annual limit of the claim stands at a maximum of Rs.2 lakh.Exemption of the interest is capped at Rs.2 lakh or actual interest amount paid for all the properties that are owned by the taxpayer, whichever is lower.

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rama krishnan (12244 Points)
Replied 29 August 2018

in case of let out properties, maximum of RS. 2 lakhs can be set off against other heads of income if there's loss from house property irrespective of how many house properties you own

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nikhil (ca) (221 Points)
Replied 29 August 2018

poonam ji,
maximum cap(200000) is for self occupied property only & not for let out property & cap of 200000 is also for interhead adjustment i.e set off loss wiith another head in loss originating year & with house property in subsequent years.
in the case asked by Anand Ji, case is for let out & not self occupied

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Poonam Lohiya (158 Points)
Replied 29 August 2018

yes, sorry for wrong interpretation...

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rama krishnan (12244 Points)
Replied 29 August 2018

whether it's self occupied or let out property, the maximum amount that can be set off against loss from house property is 2 lacs only, as said by Ms. poonam

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Sarath Chandra (CA Final Student) (566 Points)
Replied 29 August 2018

Hi Anand Sarda,
The interest on borrowed capital can be claimed as deduction for the whole amount of interest for the let out property, but the same is restricted to Rs. 2,00,000 for self-occupied property u/s 24(b) of the Income Tax Act, 1961. As the both flats are let out, you can claim the whole amount of interest as a deduction without any limit.

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ANKUR KUMAR KABRA (Student CA Final ) (26 Points)
Replied 29 August 2018

what is treatment of loss excess Rs 200000/- whether such loss is carry forward or not

rama krishnan (12244 Points)
Replied 29 August 2018

loss in excess of 2 lacs can be carry forward up to 8 a.ys

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ANKUR KUMAR KABRA (Student CA Final ) (26 Points)
Replied 29 August 2018

set off against house property income only

anand sarda (35 Points)
Replied 29 August 2018

In above case set off from let out property can be taken of interest paid in full. The limit of 200000 is for self occupied property only.

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rama krishnan (12244 Points)
Replied 29 August 2018

yes only against the income from house property

(Guest)

Self-occupied: If you have taken a home loan to buy a house that you intend to live in, the interest paid on this loan is eligible for a deduction up to Rs 2 lakhs under Section 24 of the Income Tax Act.