Loss under income from house property

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as per income tax u/s 192(2b), it enables a taxpayer to furnish particulars of income under any head other than "Salaries" ( not being a loss under any such head other than the loss under the head ― Income from house property)

My question is that this section is to be read with section 24(b) (Conditions for Claim of Deduction of Interest on Borrowed Capital for Computation of Income From House Property) which is allows deduction from income from house property on interest on borrowed capital for self occupied property.

My anohter question is that if an employees having three houses on loan and out of three one is self occupied (claiming interest exemption of Rs.1.50 lakh) and two he is showing on rent and want claim full deduction of interest paid which is arround 4.50 lakh (rental income to be adjust seperatly). can we give him a total deduction of interest to him under the head as loss on house property.

many thanks

Replies (3)

I am not able to understand what exactly is your first question.

Coming to second one, if u have borrowed funds for construction of all 3 houses, entire interest can be claimed as deduction proporationaly (based on area) for all 3 houses subject to Rs.1.5 lac or Rs.2 interest (as the case may be) in case of SOP.

Dear Ms. Poornima,

many thanks for your reply. kindly note that my question is that as per section 24(b) individual can claim the interest amount upto a limit. but if read section 192(2b) it says loss can be claimed under the head income from house property, by which i understood that if an individual is paying total of interest for Rs.5.00 lakh for three property and having rental income arround 2.00 lakh from two properties and third one is self occupied and claiming interest exemption upto 1.50. lakh. for rest two property he is showing an income of Rs.2.00 lakh and interest paid 3.5 lakh, so he is claming another 1.50 lakh as loss from house property (3.50 - 2.00).

please advice the fisibilty of this facts and can be granted. as far as i got that it is justified to get this benefits.

many thanks

Deduction u/s 24 being interest of borrowed capital should be distributed among 3 properties based on the floor area of each of the house. However, in case of SOP, the proportion of interest deduction shall be limited to Rs.1.5 or Rs.2 lacs (as applicable). In case of other 2 let out properties, deduction can be claimed without the above limit (subject to the proportionate area)

In order to give the exact information, floor area for all 3 properties are needed.

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