Income from house property

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CS Shailesh Indapurkar

Company Secretary

48 Points Posted on 29 August 2008

Assessee received rent from one of the property. He paid interest on purchase of that property.

1) Can he claim entire amt of interest from his income from house property. Is there any limit of Rs. 1.50 Lac. Or that is only in case of self occupied property

2) If property is rented only for part of the year, is interest pertaining to that part only deductible.

Replies (4)

CA MOHIT VAATS

Consultant

336 Points Posted on 29 August 2008

The interest is divided into two part:-

preincorporation interest

Post incorporation interest

For preincorporation--- the total interest shall be allowed as deduction in consecutive 5 yrs.

For post incorporation- the maximum limit is Rs.150000 per annum... subject to interest payment...not accrued basis.

No, U can claim maximum Rs.150000as interest deduction (post incorporation), it's hardly matter whether the same property is being let out for the part or whole of the year.

Guest

Posted on 29 August 2008

Originally posted by :Shailesh Indapurkar

In Case Of Let Out

Fully Amount Of Int Is deductable.

But In case of Self occupied Only 150000

Is Deductable.

VIGNESH

Manager Finance &Accounts

195 Points Posted on 31 August 2008

Originally posted by :Shailesh Indapurkar
"	Assessee received rent from one of the property. He paid interest on purchase of that property. 1) Can he claim entire amt of interest from his income from house property. Is there any limit of Rs. 1.50 Lac. Or that is only in case of self occupied property 2) If property is rented only for part of the year, is interest pertaining to that part only deductible.	"

Ya Assesse can claim deduction under sec24( b), the limit of Rs. 150000/- is only for self occupied property, the full interest paid can be claimed as a deduction if the property is let out, if the property is let out partly , and part of the property is self occupied, it should be in a proportionate basis

Shrilakshmi Raj

51 Points Posted on 11 November 2009

If in one property there are many floors. One such floor is self - occupied & others are let - out. Now interest is paid for that property as a whole.

Now out of the total interest on Housing Loan, can I allocate Rs.150,000 towards Self - occupied & the balance interest towards Let - out(since no limit) ?

Please correct me if I am wrong.