Loss on income from house property

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.

correct as per ketan

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

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.

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

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.

 

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.

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.