Interest on housing loan are exempted on second housing prop

This query is : Resolved

jitendra (Querist)
Follow

21 June 2013 Pl. advice whether interest on housing loan
are exempted on second housing property & if so , pl state under which section / rules of IT .HOUSING LOAN ARE ALREADY ON SELF OCCUPIED FIRST HOUSE.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 June 2013 Only one house can be taken as self occupied and take deduction of Rs.1.50 lakhs

incase 2nd house you want to claim, need to be show as let out property and rental income , then you can take actual interest paid as deduction u/s.24b

jitendra

jitendra (Querist)
Follow

21 June 2013 THANKS FOR YOUR QUICK REPLY,

SIR CAN U CLARIFY IS THERE ANY LIMIT OF EXEMPTION ON ACTUAL HOUSING LOAN INTEREST ON SECOND PROPERTY.

PL ALSO CLARIFY THE SITUATION ON PRE & POST CONSTRUCTION STAGE.
THE HOUSE WILL BE DEFINATELY PLANNED TO BE RENTED OUT AFTER COMPLETION.

Upgrade to CAclubindia Pro. Subscribe Now!

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 June 2013 When you are showing the house as let out property and offering rental income, you can claim the actual interest paid as deduction. no maximum limit

Interest paid for pre construction period need to be accumulate and claim after completion of construction in 5 equal installment

jitendra

jitendra (Querist)
Follow

21 June 2013 can u pl state the section / rule of IT ACT.covering above issue.pl.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 June 2013 Interest is covered under sec.24b

Letout property annual value u/s.23

jitendra

jitendra (Querist)
Follow

21 June 2013 CAN U CLARIFY WHAT WILL HAPPEN IF I WERE NOT GIVEN POSSESSION BY BUILDER WITHIN 3 YEAR FROM THE END OF FINANCIAL YEAR IN WHICH LOAN WERE TAKEN. PL EXPLAIN .

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 June 2013 There is a basic condition the construction need to claim interest u/s.24b. if not completed, interest deduction not eligible

Upgrade to CAclubindia Pro. Subscribe Now!

jitendra

jitendra (Querist)
Follow

21 June 2013 IS CLAIM OF 1/5 TH PART OF INTEREST,( AFTER COMPLETION ) + ACTUAL INTEREST OF CURRENT YEAR WILL BE EXEMPTED REGULARLY FOR NEXT FIVE YEAR .

SECONDLY THERE AFTER INTEREST EXEMPTION WILL BE VALID TILL WHOLE LOAN TENURE OF NEXT 20 YEARS.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 June 2013 Yes. for 5 years you can claim interest plus the 1/5 of pre construction interest incase of letout property

Yes. till the loan tenure, yearly interest paid/payable by you is eligible for deduction

jitendra

jitendra (Querist)
Follow

21 June 2013
SIR , WHICH IS THE AUTHENTICATED LETTER TO PROVE THE POSSESSION DATE AS PER IT RULES .
WHAT IS THE WEIGHT OF POSSESSION LETTER FROM BUILDER.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
Follow

21 June 2013 No one cannot get any letter from possession of their own house. So Builders completion certificate can be authenticate the possession.

Upgrade to CAclubindia Pro. Subscribe Now!