Income tax benefit on home loan

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Ramesh Trehan

Manager

25 Points Posted on 03 January 2014

I have got 2 properties - One in Delhi (A) and other in Noida (B). Property A is rented and Property B is self occupied on which I have a home loan. I am having annual rental income of Rs 2.4 lacs from property A and paying interest of Rs 5.5 lacs on property B. Can I get a benefit under Section 24b on Rs 3.1 lacs ( 5.5 minus 2.4).

I have looked at section 24b and it clearlys states that we can offset the loss from one property from the income from another if both the properties are rented but I am not sure what if one is rented and the other is self occupied.

Replies (3)

Pakshal Shah

Practicing Chartered Accountant

271 Points Posted on 03 January 2014

You can offset the loss from one property from the income from another even if one is rented and the other is self occupied. Further, as per limit specified under sec 24(b) a sum amounting to Rs. 150,000/- (max) is allowable. There is no limit for deduction of interest if interest is paid on rented property.

Rectify if m wrong

Ramesh Trehan

Manager

25 Points Posted on 07 January 2014

Originally posted by : Pakshal Shah

Thanks Mr Pakshal - In my case I am paying interest on self occupied property and I am not paying any interest on rented out property. So will the 150,000 limit apply on me even though the net loss exceeds that amount