Interest on home loan

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Aparna (Querist)
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03 April 2018 Hello All,
I have a query related claiming Home Loan interest in ITR.

I m claiming my HL Interest since last 2 years in my ITR the house which i m using for SOP. In sept-17 i bought a new house which is also having home loan and also using for SOP.
so can i take both home loan interest part in my ITR as interest deduction ?????

Please suggest which HL interest should i take???

Thanks
Aparna

CA Suresh Jain

CA Suresh Jain (Expert)
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03 April 2018 As per Income tax Act, it is your choice to consider a house as SOP. The another house property shall be deeded to be a let out property. You shall be able to claim actual amount of interest for the another house. Please note that w.e.f. AY 2018-19 the set off provision with respect to Income from House Property has been amended

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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03 April 2018 You have to declare notional rent to claim interest on second house.

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Aparna

Aparna (Querist)
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07 April 2018 But If i m using both the houses for my self only then how can i show notional rent income also????

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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01 August 2024 Yes, you can claim the home loan interest deduction for both houses used for self-occupation (SOP) in your Income Tax Return (ITR). Here’s a detailed explanation:

### **Claiming Home Loan Interest Deduction:**

1. **Section 24(b) of the Income Tax Act**:
- You can claim a deduction of up to ₹2 lakh per annum on the interest paid on home loans under Section 24(b) for self-occupied properties.

2. **Multiple Properties**:
- **For the First House**: You can claim the deduction for interest on the home loan if the property is self-occupied.
- **For the Second House**: The same applies if the second house is also self-occupied. You can claim the deduction of up to ₹2 lakh for the interest on the loan taken for this house.

### **Details for Claiming Interest Deductions:**

1. **Interest on Home Loan for Self-Occupied Properties**:
- You can claim up to ₹2 lakh per annum for interest paid on home loans for each self-occupied property.
- Ensure that the total interest claimed across both properties does not exceed ₹2 lakh each.

2. **Claiming Interest on Home Loans**:
- **First Property**: For the house bought before September 2017.
- **Second Property**: For the house bought in September 2017.

3. **Form 16 and Documentation**:
- Ensure you have the necessary documentation and Form 16A from your lender showing the interest paid on both loans.

### **Showing Notional Rent Income:**

1. **Self-Occupied Property**:
- **Exemption from Rental Income**: For properties that are self-occupied, there is no requirement to show notional rent income.
- You don’t need to show notional rent income for self-occupied properties; you can only claim interest deduction up to ₹2 lakh for each property.

2. **Vacant Property or Unused Property**:
- If the property is vacant but not let out, you still don’t need to show notional rent income. You can continue to claim the interest deduction for self-occupied properties.

3. **Let-Out Property**:
- If you have any property that is rented out, you would need to show actual rental income received and can claim a deduction for the interest on the loan under the head “Income from House Property” as part of the total income.

### **Summary:**

- **Claim Both**: You can claim interest on home loans for both self-occupied properties, with a maximum of ₹2 lakh per property.
- **No Notional Rent for SOP**: No notional rent income needs to be shown for properties that are self-occupied.
- **Documentation**: Ensure all loan interest payments are documented and reflected accurately in your ITR.

If you have any more specific details or additional questions, please let me know!