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Income from house property

11 October 2012

Dear Freinds,

One person having 2 houses, one is self occupied and another is let out property.

So Intereset on loan to taken to construct the self occupied house is up to Rs. 150000 and for let out property, we can claim interest on loan taken without any limit.

So, can we claim the repayment of loan taken for construction of self occupied and let out property as a deduction u/'s 80C.

80 C deduction only on self occupied and not for let out property.

Kindly let us know.

Thank you.

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2 Replies

T S D ( ) (236 Points)
Replied 11 October 2012

Section 80C of I.T Act,1961 covers the repayment of principal of housing loan. It does not prescribe any condition as to whether it is let out or self occupied.

CA Manish (Job) (5264 Points)
Replied 11 October 2012

Yes, You can we claim the repayment of loan taken for construction of self occupied and let out property as a deduction u/'s 80C.

Extracts of Sec 80C

Any sums paid by an assessee for the purpose of purchase or construction of a residential house property, the income from which is chargeable to tax under the head “Income from house property” (or which would, if it has not been used for assessee’s own residence, have been chargeable to tax under that head) where such payments are made towards or by way of any instalment or part payment of the amount due under any self-financing or other scheme of any Development Authority, Housing Board etc