Interest on barrowed capital u/s 24(b)

This query is : Resolved

Kancharla ANIL (Querist)
Follow

20 August 2011 Hi sir,

One of our Director having two houses in Hyd. One is self occupied and other is let out.For the both houses he had taken a housing loan from LIC Housing Finance Ltd.

The interest paid for 1st House in FY 2010-11 is Rs. 196966.20(Self Occupied)

The interest paid for 2nd House in FY 2010-11 is Rs. 101794.69(let Out)

Hence my query is the interest on both houses is permissible u/s 24(b).

Plz clarify

Thanks & Regards

Kancharla @nil

Preety Parik

Preety Parik (Expert)
Follow

20 August 2011 Yes, deduction of interest on borrowed capital for both the houses can be claimed.

Message likes : 1 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

20 August 2011 Section 24(b) can be claimed as follows:-
i) self occupied house - cap Rs.1,50,000/-
ii) let out house - Rs.1,01,795/-

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Kancharla ANIL

Kancharla ANIL (Querist)
Follow

20 August 2011 Sir,

I had to take the rental income from let out House property as an income from House Property after adjusting of municipal taxes and standard Deduction...

Thanks for your prompt response.

Regards

Kancharla @nil