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.
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.
| Originally posted by :Shailesh Indapurkar | ||
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In Case Of Let Out Fully Amount Of Int Is deductable. But In case of Self occupied Only 150000 Is Deductable. |
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| 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. |
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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
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.
CAclubindia
