Interest on housing loan

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Mr. X is owner of a double-storied house. The ground floor is rented to one of the commercial establishment @ Rs. 50,000 p.m., while the first floor is occupied for his own residential purpose. The house is constructed partly with housing loan & partly with own funds. Interest on housing laon is Rs. 4,00,000 p.a. Although major portion of housing loan (app. 80%) is used for construction of the first floor, i.e. self occupied portion.

Mr. X claims interest deduction of Rs. 1,50,000 [maximum u/s 24(b)] related to first floor, i.e. self occupied portion & Rs. 80,000 being proportionate interest on 20% loan used for construction of the ground floor.

Is there any other way to claim full interest deduction of Rs. 4,00,000?

 

Replies (1)

It is suggested to proporationate on the basis of carpet are used for residential and rented premises. It might result more beneficial to assessee and explainable to AO as well.


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