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Loss on income from house property

phani (Accountant) (36 Points)

11 May 2012

Interest on House Property-1 Rs 165000 p.a (Self Occupied)

Interest on House Property-2 Rs 560000 p.a (Let Out Rent Realising Rs 144000 p.a)

How much can be claimed on both the properties together.

Pl reply at the earliest.

Thanx in Advance

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10 Replies

CA Ketan Waghela (Partner at Elite Educare) (356 Points)
Replied 11 May 2012

Phani ji,

You can claim:-

House 1 (Self Occupied): Interest Rs.1,50,000/-

House 2 (Let Out): Interest Rs. 5,60,000/- (Full)

Assuming loan is taken on or after 01.04.1999.

4 Like

Anand (CA Final) (299 Points)
Replied 11 May 2012

agree with d expert

balaji (pavagada) (55 Points)
Replied 11 May 2012

Self occupied property u can claim rs 150000 for let out property full interest can claim .

vani (paid assistant) (39 Points)
Replied 12 May 2012

correct as per ketan

Subrahmanyam (AAO) (37 Points)
Replied 16 May 2012

agree with Ketan. Further, u can also claim any Municipal Taxes paid in respect of let out property

Balaji Ramani (Sr. Manager ) (45 Points)
Replied 18 May 2012

For the first house - Rs. 1,50,000

For the second house - Rs. 1,44,000 - municipal taxes paid - 30% for maintenance and repairs = Net annual value

Net Annual value - Rs. 5,60,000 = Loss from House Property

Loss from House Property can be deducted from Gross Income for the year

Illustration:

If Rent = 1,44,000 Municipal taxes = 4,000 Interest = 5,60,000 then,

1,44,000 - 4,000 = 1,40,000 - 30% (42,000) = Rs. 98,000 Net annual value

98,000 - 5,60,000 = - 4,62,000 is the Loss from House property which can be deducted from the Gross Income

This is in addition to the Rs. 1,50,000 for the first property.

So, in total a deduction of Rs. 6,12,000 (4,62,000+1,50,000) can be deducted.

Hope this helps.

Gour Kapil Kumar (Cost Accountant) (21 Points)
Replied 09 May 2013

how much amount of loss from house property(let out) should be adjusted against salary income.

chandan v p (Article) (27 Points)
Replied 14 June 2016

Kindly guide me in this regard,

case1 House property constructed on 31.3.16 (date of completion) and let out from 1.4.16. Interest paid for py 2015-16 Rs.525000.Actual rent is NIL for the PY as the property was let out from 1.4.16.What should be the GAV? How much interest can i claim?

Case 2 House property constructed on 01.10.15 (date of completion) and bank charged principal from 01.10.15 but interior work finished on 31.3.16 and let out from 1.4.16. Interest paid for py 2015-16 Rs.525000.Actual rent is NIL for the PY as the property was let out from 1.4.16.What should be the GAV? How much interest can i claim?

In both the cases Loan taken on 1.4.15.

CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 14 June 2016

A little correction is to be taken in all the openion above that as per finance act 2015 interest on loan on self ocupied house property is increased from 150000 to 200000, Hence you can claim Rs 165000 as interest deduction from self occupied house property, and whole amount of interest paid on let out house property that is Rs 560000.

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 12 December 2016

Hello @ Chandan

The Interest that has been paid before the completion of construction should be aggregated and the whole aggregated amount shall be allowed as tax deduction in 5 equal installments for 5 successive Financial Years starting from the year in which the construction has been completed.

The pre-construction interest is allowed upto a limit of Rs 2 Lakhs including the current year interest payment on home loan. This can be claimed only after the house is ready and possession is taken over. If the house has been let out, the taxpayer can claim the entire interest component as deduction from the rental income without any restriction.