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House Property - Interest on Loan

12 January 2018

Is limit of INR 2 Lac for interest on loan applicable if the property is rented? (Assuming the individual only has 1 Property)

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14 Replies

Manjul Prakash (14 Points)
Replied 12 January 2018

i want to know within section 24, is there limit on claiming interest on loan of property for 2 Lac?
I know this restriction on loan interest applies for self occupied house

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 12 January 2018

For rented property, total amount of interest paid over home loan is availed as deduction first.........

After deducting the rental income from it, max. upto 2 lakhs is allowed as loss from house property, and additional if any, is carried forward.

Manjul Prakash (14 Points)
Replied 12 January 2018

so you mean even for rented property, max loss on house property allowed is INR 2 Lac?

RAJA P M ("Do the Right Thing...!!!") (127140 Points)
Replied 12 January 2018

https://cleartax.in/s/house-property

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Arun (student ) (112 Points)
Replied 12 January 2018

if the property is let out - u can claim interest without any limit u/s 24(b)
if the property is self occupied
loan taken for purchase or construction Max 2 lakh
loan taken for repair or renovation
Max 30,000

Manjul Prakash (14 Points)
Replied 12 January 2018

I just read max loss on house property that can be availed is 2 Lac wef FY 2017-18

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 12 January 2018


	I just read max loss on house property that can be availed is 2 Lac wef FY 2017-18

Yes, correct. Maximum loss under the head income from HP is capped at 2 lakhs, whether it is for single or multiple house properties, Self occupied or rented, and the balance is carried forward.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 13 January 2018

mr. dhirajlal, could you please provide the proviso under which it is mentioned that only 2 lakhs can be claimed for let out property?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 13 January 2018

Originally posted by : RAMAKRISHNAN R
	mr. dhirajlal, could you please provide the proviso under which it is mentioned that only 2 lakhs can be claimed for let out property?

Did I mean that? May be wrongly interpreted.

1. While computing income chargeable to tax under the head “Income from house property” in case of a let-out property, the taxpayer can claim deduction under section 24(b) on account of interest on loan taken for the purpose of purchase, construction, repair, renewal or reconstruction of the property. In case of a let-out property, there is no limit on the quantum of interest which can be claimed as deduction under section 24(b). However, in case of a self occupied property, limit is Rs. 2,00,000 or Rs. 30,000, as the case may be.

2. As per Finance bill, 2017..........

Restriction on set off of loss from House Property

If the net result of computation of income under the head “House Property” is loss then such loss can be set-off against any other income upto Rs. 2 Lakh in any assessment year.

However, the loss which couldn’t be set off can be carried forward for set-off in subsequent years. It can be carried forward for 8 Assessment years for set-off.

1 Like

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 13 January 2018

mr. Dhiraj sir, could you please provide me the proviso of the section where it's speaks about this
Restriction on set off of loss from House Property

If the net result of computation of income under the head “House Property” is loss then such loss can be set-off against any other income upto Rs. 2 Lakh in any assessment year.

However, the loss which couldn’t be set off can be carried forward for set-off in subsequent years. It can be carried forward for 8 Assessment years for set-off.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 13 January 2018

Page no. 11 of income-from-house-property.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 13 January 2018

1. Page no. 9 ...... sr. no. 19 of IMPORTANT CHANGES FINANCE ACT 2017, attached herewith....

Attached File : 1648935 20180113124456 important changes.pdf downloaded: 75 times

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 13 January 2018

Following sub-section (3A) shall be inserted after sub-section (3) of section 71 by the Finance Act, 2017,
w.e.f. 1-4-2018 :
(3A) Notwithstanding anything contained in sub-section (1) or sub-section (2), where in respect of any
assessment year, the net result of the computation under the head "Income from house property" is a loss and
the assessee has income assessable under any other head of income, the assessee shall not be entitled to set
off such loss, to the extent the amount of the loss exceeds two lakh rupees, against income under the other
head.

From:

Attached File : 1648935 20180113133018 income tax department section 71.pdf downloaded: 73 times