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Housing loan interest deduction under section 24

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Poonam Mirani

24 Points Posted on 09 February 2024

can interest be claimed on a housing loan taken for the purchase of a 3rd house?one is owned by me and one is joining held ,received in gift.now want to purchase new house.No loan outstanding in earlier two property.

Replies (2)

Quick Summary

This discussion clarifies the rules for claiming interest deductions on housing loans under Section 24 in India. It explains that while you can claim deductions for a maximum of two self-occupied properties, any additional properties will be treated as 'let out' for tax purposes, even if not rented out. The specific scenario involves purchasing a third house and the implications for interest deductibility.

Saravanan nagaraj

332 Points Posted on 09 February 2024

In India, an individual is allowed to claim a maximum of two houses as self-occupied for tax purposes. In case you use more than two properties for self-occupation, you need to pick any two of them as self-occupied. The remaining are going to be treated as let out properties even if you have not actually let them out.