07 March 2009
I have two houses. One is vacant and other is let out. I had taken loan from bank for the purpose of acquiring both the properties. I am claiming interest expense as deduction for first house, subject to max. limit of Rs.1.5 lacs p.a. Can i claim interest as deduction for second house? If so, is there any limit? Can the loss under second property be set off against salary income. Pl. clarify. Thanks. Rgds, Srinivas
07 March 2009
Vacant House shall be treated as Deemed Let Out and hence you are eligible for Interest Deduction u/s 24(b) for actual interest paid similarly the Actual Let out House is Also Eligible for Dedustion, The limit of 1.5 Lac is only for Self occupied House there is no limit for interest paid on Let out houses Only Loss from Business & Profession can not Set-off against Salary Income u/s 71 therefor you can set-off the HP Loss Against Salary Income u/s 71