House property

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NaveenKumar (Querist)
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18 January 2019 Hai Sir,
I have doubt in Income from House property topic. whether the assessee have a right to claim the interest and principal portion of housing loan he bought for 2nd or 3rd house?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 January 2019 Interest can be claimed against rental income. Principal portion allowed for one house.

Z (Expert)
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18 January 2019 SEETHARAMAN Sir, I don't think that S.80C(xviii) has provided any limitation on availing the deduction i.r.o the principal amount of loan for more than one residential house property.

If I am mistaken, kindly clarify.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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18 January 2019 See the link.
https://www.myloancare.in/tax-benefit-on-home-loan/

Z (Expert)
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18 January 2019 Dear Sir, in that article they have not mentioned that on what basis they have concluded that the benefit of principal repayment shall be restricted to only one house property.

Nevertheless, the cap of 150,000 would still be applicable. I am quoting the provision for a quick reference.

80C. (1) In computing the total income of an assessee, being an individual or a Hindu undivided family, there shall be deducted, in accordance with and subject to the provisions of this section, the whole of the amount paid or deposited in the previous year, being the aggregate of the sums referred to in sub-section (2), as does not exceed one hundred and fifty thousand rupees.
(2) The sums referred to in sub-section (1) shall be any sums paid or deposited in the previous year by the assessee—

(xviii) for the purposes of purchase or construction of a residential house property the income from which is chargeable to tax under the head "Income from house property" (or which would, if it had not been used for the assessee's own residence, have been chargeable to tax under that head), where such payments are made towards or by way of—

(a) any instalment or part payment of the amount due under any self-financing or other scheme of any development authority, housing board or other authority engaged in the construction and sale of house property on ownership basis; or

(b) any instalment or part payment of the amount due to any company or co-operative society of which the assessee is a shareholder or member towards the cost of the house property allotted to him; or

(c) repayment of the amount borrowed by the assessee from—

(1) the Central Government or any State Government, or

(2) any bank, including a co-operative bank, or

(3) the Life Insurance Corporation, or

(4) the National Housing Bank, or

(5) any public company formed and registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes which is eligible for deduction under clause (viii) of sub-section (1) of section 36, or

(6) any company in which the public are substantially interested or any co-operative society, where such company or co-operative society is engaged in the business of financing the construction of houses, or

(7) the assessee's employer where such employer is an authority or a board or a corporation or any other body established or constituted under a Central or State Act, or

(8) the assessee's employer where such employer is a public company or a public sector company or a university established by law or a college affiliated to such university or a local authority or a co-operative society;