Loss on Housing property

My cousin working in a State Govt. have this problem.  He has got a house let out  and he submitted loss on housing property around Rs.195 lakhs as his loan quantum is around Rs.30.00 lakhs. His DDO is not accepting the concept that no ceiling for let out properties.  His contention is that Rs.1.50  lakhs for both self-occupied and let out as well. Kindly through light on this.

Replies (7)

The ceiling limit of Rs. 1,50,000 or Rs. 30,000 is prescribed for self-occupied property  in respect of interest on loan borrowed and it does not apply to a deemed let-out property.

 

 if the house is a let out one, then there s no ceiling on the interest, only if its self occupied for the whole year(that is not let out  even for a single day ) then the 1.5/30k int ceiling is aapplicable.

 Ceiling limit for interest on borrowed capital is applicable in the case of House property covered under section 23(2) (a) that is in the case

(i) self occupid property

(ii)If  Property could not be occupied due to the resons of employment or business of the owner at some other place [23(2)(b)]

For any other case there is no ceiling limit.

 there is no ceiling limit for let out portions . for self occupied property

Rs. 150,000 - if for construction 

Rs. 30,000 - if loan taken for renewal of the same.

 There is no ceiling limit regarding interest on let out house property. hence deduction can be claimed.. 

ya... it's rite... no ceiling limit for interest in let out property...

S the ceiling limit is for self occupied, not for let out.

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