09 December 2009
TOW TYPE OF DEDUCTION IS ALLOWED ONE INTEREST OF LOAN U/S 24 SECOND PAYMENT OF PRINCIPAL AMOUNT OF HOUSING LOAN U/S 80C. INTREST OF BOTH LOAN ALLOWED IN CASE OF SELF OCCOPIED HOUSE MAXIMUM DEDUCTION Rs.150000.AND ANOTHER HOUSE WHOLE INTREST AMOUNT. PAYMENT OF PRINCIPAL AMOUNT OF LOAN ALLOWED ONLY ON ONE LOAN THAT IS TAKEN FOR SELF OCCUPIED HOUSE.
09 December 2009
Out of two houses, only one house according to one's own choice is treated as self-occupied and the second house is treated as let out.
Interest on House Loan: For self-occupied house, Interest is allowed upto Rs 150000. For let-out house, Interest is allowed to full extent
Repayment of Principal qualifies for Deduction u/s 80C upto Rs 100000 both in respect of self-occupied house and let-out house. "..the tax benefit under section 80c remains same irrespective of whether the house property is self-occupied or let out"
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