Interest on Borrowed Capital

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Abhi123 (Querist)
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01 July 2010 Is there any limit of Interest on Borrowed capital in case of let out house. Can we claim deduction u/s 80 c for Repayment of principal and interest on borrowed capital under house property income for let out

Rahul Gupta

Rahul Gupta (Expert)
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01 July 2010 The overall limit of Rs.1,50,000 for interest on capital is applicable for the house property. There is no provison for self-occupied ot let out for the deduction. So it can be claimed in both situations.

Same is the case with principal repayment in 80C upto the ceiling limit of Rs.1,00,000. It can be claimed in both cases of self occupied and let out.

taxindiaconnect

taxindiaconnect (Expert)
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01 July 2010 Rahul,

Rahul,

I would like to correct you on this. There is not overall limit for deduction of interest u/s 24 on rented house property. In case of self occupied property which is the only property of the taxpayer, in that case the overall limit of 150K applies.

The overall limit for claiming the 80C benefit is, as rightly stated by you is Rs 100K and it can be on both either rented or self occupied property.

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Rahul Gupta

Rahul Gupta (Expert)
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01 July 2010 YA..Sorry Mr Rajesh. Thanks for correcting.
My concentration is on whether deduction is available on let out or not...........so i missed that point...

Thanks a lot for correcting......

And I apologize for the improper answer......

Once again, thanks a lot for preventing me from misguiding somebody........