02 January 2013
As I understand, if I have two housing property, I will be able to do the following:
1) Property 1 Loan - 1 Lakh principal deduction and 1.5 Lakh interest deduction (self occupied, no income) 2) Property 2 Loan - No principal deduction and no-limit interest deduction + add rental income
I would like to know, if I do not have any outstanding loan against Property 1 (closed by making pre-payment), can I still consider Property 2 as second property and take no-limit interest deduction?
So, from the following, will it be 2.A or 2.B?
1) Property 1 - No loan, No deductions, No rental income, self occupied 2) Property 2 -
2.A) No principal deduction and no-limit interest deduction + add rental income (as this is still second property)
2.B) 1 Lakh principal deduction and 1.5 Lakh interest deduction (considering I have only one home loan)
02 January 2013
For property given on rent you can claim a) Rs. 1,00,000/- against principal. since you are not claiming anything against the Self occupied Property
b) No limit interest deduction since the second property is let out/deemed to be let out.
CAclubindia
