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IT declaration with 2 house properties

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Jimmy Kid

23 Points Posted on 16 September 2021

Hello experts,

I am opting for old tax model
I have 2 housing properties as given below
1. Self occupied with existing home loan, loan amount 5676000. This is with a co-owner.
We repay principal and interest, each contributing 50%. Total principle: 224207 total interest: 363129

2. Rented out, no existing loan. annual rental revenue around 192000

My questions are Which all sections and how should I filling tax declaration? 80C, 80EE, 24.. totally confused
In 80EEA, I am seeing some pre-populated amount, what is it?

Thanks in advance

Replies (4)

Quick Summary

This discussion addresses how to declare two house properties when opting for the old tax regime. It clarifies that while principal repayment on a self-occupied property can be claimed under Section 80C (up to £1.5 lakh), and interest under Section 24(b) (up to £2 lakh), Section 80EEA is likely not applicable due to property value and ownership conditions. The advice suggests using ITR-2 due to the house property income and deductions, rather than ITR-1.

JGM

Knowledge Sharer

285 Points Posted on 16 September 2021

section 80EEA provides for deduction in respect of interest on housing loan. To claim this deduction, you need to fulfill following conditions:

1. Loan is sanctioned by the financial institution during the period 1 April 2019 to 31 March 2021;

2. stamp duty value of residential house property does not exceed INR 45L

3. taxpayer does not own any residential house property on the date of sanction of loan

In you case, it appears that condition mentioned in 2 and 3 above is not satisfied and hence you are entitle to claim deduction under section 80EEA of the IT Act.

Having said this, you can claim deduction as per following:

Principal repayment - under section 80C - upto INR 1.5L

Interest - under section 24(b) - upto INR 2L

Please note that you can claim only your portion.