Rebate in i tax on house property

Tax queries 359 views 2 replies

Rakesh Jain

24 Points Posted on 29 March 2015

I availed Housing loan from a nationalise bank in 1997 for house at Moradabad and availed income tax rebate on intt. and installmets. Principal HL adjusted in Feb 14 and thereafter housing loan installments were utilized to appropriate intt. portion only. Can repayment of interest be included in 80c of Income tax.

Secondly, I purchased another house in another city this Financial year. Can I avail rebate on this housing loan.

Replies (2)

CMA Poornima Madhava

CMA

13117 Points Posted on 29 March 2015

Repayment of interest not eligible for deduction u/s 80C. Interest payable can be deducted u/s 24b up to 30k.

With respect of other house purchased (on loan), you can avail deduction of interest u/s 24b up to 2 lacs (if self occupied or else no limit) and deduction on a/c of repayment of principal u/s 80c up to 1.5 lacs. You can show only one house (out of the 2) as self occupied and other house is deemed to be let out.

Vishal Goel

Chartered Accountant

1693 Points Posted on 31 March 2015

Originally posted by : Poornima M
	Repayment of interest not eligible for deduction u/s 80C. Interest payable can be deducted u/s 24b up to 30k. With respect of other house purchased (on loan), you can avail deduction of interest u/s 24b up to 2 lacs (if self occupied or else no limit) and deduction on a/c of repayment of principal u/s 80c up to 1.5 lacs. You can show only one house (out of the 2) as self occupied and other house is deemed to be let out.