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Interest on house loan -

ITR 1072 views 3 replies

CA. BIJENDER KR. BANSAL

ACA B.COM

8153 Points Joined August 2007

Dear all,

If an employee has 2 houses . & he has taken loan for each house.

then interest on borrowed capital is allowed for both house or not.

whether deduction for repayment of house loan & interest part is allowed for both houses or single one.

Please tell asap.

Thanks & Regards

CA. B.K.BANSAL

Replies (3)

Ritesh.D.jain

CA Job

232 Points Joined March 2007

No, interset on borrowed capital is allowed for one house only.

I am not sure about this, but still i would like to give out my opinion.If you own 2 houses, then, the one in which you live will be self occupied and the other one will be deemed to be letout. So you can claim interest on loan u/s.24 subject to the restriction that in the case of self occupied property, the maximum amount of interest that can be claimed would be Rs.1,50,000.00 and for deemed to be letout, it will be the actual amount paid (no ceiling limit).

However the principal amount of loan repaid can be claimed u/s.80C upto a maximum of Rs.1,00,000.00