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Carry forward of excess interest of housing loan

CA Aspirant (CA) (190 Points)

11 July 2020

if interest = 4,50,000 and maximum limit is upto 2,00,000 so can we carry forward to next year the excess loss of 2,50,000 as itr-1 is showing that to claim in excess amount to carryforward please file itr-2 ??

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12 Replies

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 11 July 2020

if property is LO then there is NO limit of interest as deduction

but if property is SO then upto Rs. 2,00,000 only

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 11 July 2020

if property is LO then there is NO limit of interest as deduction

but if property is SO then upto Rs. 2,00,000 only

1 Like

CA Aspirant (CA) (190 Points)
Replied 11 July 2020

Property is SO and while filling itr-1 it is showing that to carry excess loss of 2.5 lacs file itr-2 , is this possible ??

CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 11 July 2020

I think , it is NOT possible to carry forward interest and maximum upto only Rs. 2,00,000

1 Like

CA Aspirant (CA) (190 Points)
Replied 11 July 2020

Thank you

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 11 July 2020

welcome !

1 Like

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 11 July 2020

If you wish to set off the loss in subsequent year kindly file ITR 2 else the excess amount will not be carry forward..

CA Aspirant (CA) (190 Points)
Replied 11 July 2020

Property is self occupied and there is only interest of 4,50,000 and 2,00,000 can be setoff and can we carryforward rest 2,50,000 amount ?

CA ABHAY GUPTA (Practice) (3230 Points)
Replied 11 July 2020

Yes w.e.f FY 2018-19 it is allowed

1 Like

CA Aspirant (CA) (190 Points)
Replied 11 July 2020

Somewhere it is written that carry forward is applicable in case of letout as i haven't found this under act ??

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 11 July 2020

BUT in the case of LO , there is no limit of interest deduction , whole amount shall be allowed and balance shall be c/f

1 Like

CA Aspirant (CA) (190 Points)
Replied 12 July 2020

In case of LO also maximum loss which can be setoff is 2,00,000 and rest is carry forward , but my question is i found it no where (act) it is clearly written that this carry forward is possible in case of SO ?