hsg loan interest deduction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2010 if the property is let out then the deduction for interest paid is restricted to Rs. 150000/30000 or the whole amount of interest paid can be claimed as deduction.......pls advise.

Rahul Gupta

Rahul Gupta (Expert)
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14 June 2010 Deduction of Interest payment is resticted to Rs.150000.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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14 June 2010 agreed with rahul ji , if property is self occupied.

As per my memory, if property is let out , then there is no limit of Rs.150000, then all interest is allowed as deduction.

Other's expert's opinion is solicited.

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CA Sanat Pyne

CA Sanat Pyne (Expert)
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14 June 2010 where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section (2) of section 23, the amount of deduction shall not exceed thirty thousand rupees :

Provided further that where the property referred to in the first proviso is acquired or constructed with capital borrowed on or after the 1st day of April, 1999 and such acquisition or construction is completed 39[within three years from the end of the financial year in which capital was borrowed], the amount of deduction under this clause shall not exceed one lakh fifty thousand rupees.

Explanation.—Where the property has been acquired or constructed with borrowed capital, the interest, if any, payable on such capital borrowed for the period prior to the previous year in which the property has been acquired or constructed, as reduced by any part thereof allowed as deduction under any other provision of this Act, shall be deducted under this clause in equal instalments for the said previous year and for each of the four immediately succeeding previous years:]

40[Provided also that no deduction shall be made under the second proviso unless the assessee furnishes a certificate, from the person to whom any interest is payable on the capital borrowed, specifying the amount of interest payable by the assessee for the purpose of such acquisition or construction of the property, or, conversion of the whole or any part of the capital borrowed which remains to be repaid as a new loan.

Explanation.—For the purposes of this proviso, the expression “new loan” means the whole or any part of a loan taken by the assessee subsequent to the capital borrowed, for the purpose of repayment of such capital.]

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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14 June 2010 Yes, Interst on home loan in case of let out property, there is no limit . Please click on the below link for full detail of home loan tax benefits.

http://www.themoneyquest.com/2009/04/home-loan-tax-benefits-deduction-80c.html

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Rahul Gupta

Rahul Gupta (Expert)
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14 June 2010 Very useful article Bansal Ji.. Thanks for that.