Housing loan

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Haresh (Querist)
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04 March 2013 Mr. A has purchased a second house on Housing Loan. He is Enjoying the deduction u/s 24 of Rs. 50,000/- will he entitled for balance Rs. 100,000 interest on second house u/s. 24?

CA Prashant Gupta

CA Prashant Gupta (Expert)
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04 March 2013 yes,
there is no prob in sec 24
he can claim 1,50,000

Santosh Mishra

Santosh Mishra (Expert)
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04 March 2013 Mr. A at his option needs to declare one property as self occupied and he can claim exemption for interest up to 150,000.

Second property would be treated as deemed let out property and he require to declare notional rental income, in this case there is no limit for house loan interest.

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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04 March 2013 According to the section 24(b) for the self occupied property there is maximum limit to claim deduction of interest on housing loan is Rs.150000 per one property and for let out property there is no restruction on claiming of interest on housing loan as deduction i.e unlimited.

As well as according to the income tax act any assessee has more than one house property and no property is not given to let out then we have to assume deemed let out and offer rent income as per the municipal value of rent. So above said provision also applicable for deemed let out properties(i.e claiming of unlimited interest on housing loan as deduction u/s 24(b)).

Now for your case. According to your question you i understand you have 2 house properties and your doubt is the exemption limit of interest on loan upto 150000 can be partly claim to one property and other part can claim to another property.

According to the above explanation by me it is cleared the exemption limit is u/s 24(b) is for each property not aggregate of assessee. As well as above provision in case if you not let out second property you have to assume it deemed let out and offer income of rent as per Municipal value and claim interest on housing loan u/s 24(b) unlimited which is incurred on the house loan taken for the purpose of second house. and for the first house i.e for self occupied house you can claim upto Rs.150000 u/s 24(b) for the interest on housing loan taken for that house.

In case both houses are self occupied then at the choice of you one house you have to deemed let out.

Note: Interest incurred on the housing loan shall be consider for the deduction from such house property income on which you such loan availed. I.e loan for one house but interest exemption for another house doesn't available.

Are you understand otherwise write your doubts anything else.

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