25 January 2011
A person is having 2 houses. He lives in one house & the other one is vacant/let out. He has taken housing loan on both the houses. 1. Can he claim deduction of interest u/s 24b for both the houses? 2. If yes, what is the limit? 3. If no, then on which house can he claim deduction? 4. What shall be the tax effect of principal portion repayment u/s 80C?
25 January 2011
1. he may claim deduction of interest u/s 24b for both houses irrespective of vacancy/letting position of the second house; however in case, if any or both houses are let out he has to take rent income in his return. 2. the limit u/s 24b is Rs. 1.5 lacs in a year. 3. as per 1 & 2 4. principal payment may be claimed u/s 80c as per limit.
25 January 2011
Deduction u/s 24(b) is limited to Rs. 1,50,000/- in the case of self occupied house and for the other which may be called either as deemed to be let out,if vacant, or let out,as the cas may be, for which the said deduction is unlimited meaning thereby the entire interest payable in a financial year can be calimed.
CAclubindia
