Respected Sir
Suppose home loan taken for house at village. The person has self occupied property in mumbai suburban city. How to treat this village home loan? can 80C deduction is applicable for village home loan?
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Interest on home loan on let out property
Replies (2)
Yes, deduction can be availed. From the Installment. Principal component is to be shown under section 80C subject to limit of 150000. and interest component (without any limit for A.Y 2017-18) can be shown as deduction under income from house property . Remember He has already one house in mumbai then the house in village is to be treated as rent out and hence rent received or fair rental value is to be also shown as income under house property.
The house property in village shall be considered as let out property. The principal amount of the instalment shall be liable to deduction u/s 80C (subject to maximum of Rs.1.50 Lacs). While the interest paid shall be allowed as deduction u/s 24 ( without any limit) of House Property Income.
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