Interest on housing loan and no. of properties on which housing loan exemption can be claimed.

Hello,

The answer to your first question is that, the amount of Rs. 200000 is in a year. So in a year you can claim maximum interest upto Rs. 200000 for a self occupied property. The Deduction u/s 80EE is for a person and not property. So if you claim it for one property then cant claim for the second property.

Deduction of interest u/s 24 for the second property, you can claim complete interest amount as the second property will fall in category of deemed let out.

Thanks

Housing loan taken for the purpose of self occupied house purchase/construction then the limit of Rs. 200000 as interest is allowed as deduction but in case of commercial properties there is no such limit so one can claim the whole amount of interest payable.(u/s 24(b)

Interest is allowed to be deducted on accural basis means even if the payment of interest has not been done the deduction will be allowed for the amount of interest related to P.Y.

Apart from that the payment of prinicipal amount is also allowed as deduction u/s 80(c) up to a limit of Rs. 150000 but its is allowed on payment basis and only for residential property only but it can be for more than one house property.

Hi, 

Thanks for the response. Just to clarify further, if I pay interest of Rs.2L in year 1 and again Rs. 2L in year 2, I can claim the deduction of Rs. 2 L in each year. Also, if I have two HP's, is the limit of Rs. 2L available for each HP (both being self occupied) or Rs. 2L overall. 

Each year 2 lakhs limit is there for self occupied residential house.If you have two residential house then you have an option to choose one house as residential and another as deemed let out in that case the deduction for interest on loan taken for the another deemed let out house will have no limit.