Prob in TAX RTP

IPCC 753 views 5 replies

I feel there is a problem in tax rtp 5th question (House Property) about the interest.....can someone clarify it plzz.....

 

Replies (5)

whats the problem??

for house 1 the loan taken is 80,000 on 01.04.1998......and for house  2 it is 140,000 on 1.04.2005


interest rate is not given.........the problem is to find out the which of the two houses should be treated as self occupied


now......in option1, house1 is self occupied and house2 is deemed to be let out.......here the interest is taken as 30,000 for h1 and 140,000 for h2


in option2, h2 is self occupied and h1 is deemed to be letout......in this part interest for h1 is taken as 80,000......and 140,000 for h2


How can loan amount be taken as interest??? whats the reason for the difference in interest amounts for house 1???

Dear Anuradha,

Read the line above the date of Loan Details. It is "Interest on Loan" .

So, details given below that title are relate to the Interest on the loan taken & it is not repayment of loan.

Only the date of borrowing  is given & that is probabely for the reason that deduction of  interest  u/s.24(b) is restricted to Rs. 30,000/- if it is self occupied house property.

Hope Your doubt is clear now.

Thanks

Moin

 

 

 

ohhhh......yeahhhh.....right............thanx Moin :D

"How can loan amount be taken as interest???"

See the question properly

Its in the sub heading

30000 because of the provision that says where the property is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed before the 1st day of April, 2001, the provisions of the first proviso shall have effect as if for the words "thirty thousand rupees", i.e interest upto a max of 30000 only


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