Treatment of housing loan principal

618 views

Save Share

Join Us Follow Us Add as Source

Mohan Kumar

Others

34 Points Posted on 28 December 2014

Sirs,

Could you please clarify this point.

I have two flats and both flats have housing loan. can I consider the principal portion of EMIs of both housing loans for sec 80 C benefit? or only the principal paid for the self occupied house eligible for this. Can the principal of rented house also eligible for 80C benefit?

please gudie me

Thanks in advance

Mohan

Replies (2)

CA Raj Doshi

Practising CA

5649 Points Posted on 28 December 2014

Principal of both the houses can be taken for 80C deduction. Principal amount of loan of rented house also eligible for 80C.

Vishal Goel

Chartered Accountant

1725 Points Posted on 20 March 2015

Yes, you can get the 80C benefit on both loans. However, the total amount that you will be entitled to will be a total of Rs 150,000 (Rs. 1 Lakh up to A.Y. 2014-15) across both the homes.

The interest paid on a home loan is not directly deductible from your salary income for either of your flat loans. Income from house property will be calculated for each flat you own. If either of theses calculations shows a loss, this loss can be set off against your income from other heads.

As for Section 24 deduction, on your self occupied house you can take advantage of interest payments up to Rs.2,00,000 (Rs. 1.50 Lakh up to A.Y. 2014-15). For the other property, you can claim actual interest repaid, there is no limit for the same.