interest on mortgage loan - income tax claim

n chellappa (DGM-Finance) (24 Points)

25 May 2010  

Dear All

I have an interesting query from my collegue. He has constructed a secondary housing from his own funds and he has let out the property. After few years, now he has taken the loan from the bank by mortgaging the secondary house. Now he wants to claim the interest on this loan under Income from house property clause. He is not mentioned the reason for the mortgage loan and not used it for it's constrution acivities.


kindly advise whether he can deduct this interest under "Income from House Properties"