A person has taken house loan and pays interest on it and therefore he gets deduction for it.Now he wants to purchase second house and has taken loan for the same.So he pays interest on it also.Now the question is will he get deduction of interest of both the loans taken?
10 Replies
CA Hemant T Dewani
(Chartered Accountant)
(3356 Points)
Replied 18 December 2008
if you are purchase socond house then it is deemed let out property & you will take full exemption of interest to second house but deduction of principa is not available u/s 80c to you but loss on house property of another house is setoff from othere income
CA CS Akashdeep Singh
(Practicing CA)
(1394 Points)
Replied 18 December 2008
Yes you can get the deduction of interest in case of purchase of second house
CA RAMESH KUMAR AHUJA
(CA, DISA, LLB)
(5452 Points)
Replied 18 December 2008
Yes, interest may also be claimed for H.Loan for a property which is let out.
hari2009
(Executive)
(224 Points)
Replied 18 December 2008
He needs to provide the income from Let out Property also
Please reply me whether it is correct or wrong
Nirmala
(Articles Student)
(107 Points)
Replied 18 December 2008
Yes if there is any income from the let out property, he has to show the annual value as income from house property but he can claim the entire interest amount as exemption.
CA.Madhu
(Charted Accountant)
(204 Points)
Replied 19 December 2008
The assessee can opt for one house as a self-occupied and remaining houses deemed to be let out though it is not let out actually during the year and also can claim interest on both the houses simultaneously
hari2009
(Executive)
(224 Points)
Replied 24 December 2008
i have doubt on interest on housing loan
one of the employee earning a salary of 22laksh per annum
he has given the Investment declaration of rs 12lakhs
construction of house started 3 months back
what is the Tax treatment for his Tax Liability
please help me out in this regards
PIYUSH AGARWAL
(CHARTERED ACCOUNTANT)
(91 Points)
Replied 24 December 2008
yes the assessee can claim the deduction of int u/s 24 and for principal u/s 80C for both the loans taken for house property.
pappu mishra
(Service)
(121 Points)
Replied 24 December 2008
yes, deduction will be available on both the houses subject to limit of section 24(2) i.e. Rs. 30,000 or Rs.1,50,000/- as applied in case of let-out and self-occupied respectivetly. LIMIT OF DEDCUTION IS NOT RESRICTED TO NUMBER OF HOUSE BUT ON AMOUNT AS MENTIONED ABOVE
Pemmasani Purushotham
(M.B.A, C.A.Final)
(418 Points)
Replied 24 December 2008
He is eligible to claim interest u/s.24 After Completing the Construction of the house, untill he is not eligible.
Interest is in 2 forms
if the house takes completion 1 year or low it comes under current year int, if it takes more than that like 2 or 3 year we have to calculate prior period int.
1. current year interest - fully allowed in that year
2.prior period interest - Ded in 5 equal installments over a period of time
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