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Interest on housing loan

CA Aspirant (CA) (156 Points)

08 August 2020

interest on housing property= 4,50,000
Self occupied
Maximum limit= 2,00,000
Can assessee carry forward the excess interest of 2,50,000?

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6 Replies

Chahat Bansal (226 Points)
Replied 08 August 2020

Maximum interest expense allowed is Rs 2,00,000.
House property loss can be carried forward for 8 AY but Interest is not a loss it's an expense.
So we can't carry forward it.
Excess if any, from 2,00,000 will lapse.

1 Like

CA Aspirant (CA) (156 Points)
Replied 08 August 2020

I respect but,
There is an amendment in FA 2019 or 2020 on this issue, and on internet also there are fiffrent opinion available which are enough to make anyone confuse expamle Read this
https://blog.saginfotech.com/tax-benefit-on-home-loan-interest

1 Like

Chahat Bansal (226 Points)
Replied 08 August 2020

U/S 80 EEA Interest paid is allowed as deduction upto Rs1,50,000 which is over and above 24(b) 2,00,000 provided following conditions are satisfied:

1. Stamp duty value of house is <=45 lakh

2.Loan must sanctioned in PY 19-20

3. Individual should not be eligible to claim deduction u/s 80 EE

4. Individual should not own any residential house on date of sanction of loan

1 Like

Akhil (Student CA ) (966 Points)
Replied 08 August 2020

Hey anuj u can claim balance int of 2.5 lac in 80eea but some conditions need to b complied

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CA Aspirant (CA) (156 Points)
Replied 08 August 2020

Yes assessee is having salay income also but for c/f of house property loss he has to file itr 2, and some are saying interest cannot be carried forward he has to file itr 1, even some experts on youtube also says to carry forward same as you
https://youtu.be/vrnqPxzyjOA

rama krishnan (12234 Points)
Replied 09 August 2020

The maximum amount of interest that can be claimed under 24(b) is 2 lakhs for self occupied property and there's no limit for let out property. the maximum amount of HP loss that can be set-off against other heads of income is 200000. the maximum amount of loss that can be carried forward to future years is 200000 lakh