Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Deduction u/s 24 without house property income

Jyothis (Article) (1127 Points)

21 March 2016

Can interest on Self Occupied House Property be shown as loss on house property- when individual has no house property income.

Can an individual in receipt of salary claim deduction u/s 24 as deduction in salary tds.

Reply
Follow
Share

8 Replies

CA PRATIK DHRUVE (CHARTERED ACCOUNTANT) (634 Points)
Replied 21 March 2016

Interest on house property can be shown as a loss under the head income from house property.

This loss can be set off against salary income. It can also be deducted while calculating TDS on salary by employer.

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

shalini (CA) (525 Points)
Replied 21 March 2016

Yes, interest upto 200000 (for A.Y. 2016-17) can be shown under house property head and deducted from salary to calculate TDS.

1 Like

Jyothis (Article) (1127 Points)
Replied 21 March 2016

Consider the following case-

Interest on House property- Rs.4,25,000/-

(Joint loan in name of husband & wife )

Husband let out the property & shows income from houeproperty & claimed Rs.2 lacs u/s 24.

(Entire income shown by husband)

Wife who have salary income,can she claim balance of Rs.4.25 lacs,2lacs u/s 24 as house property loss for salary tds.

CA PRATIK DHRUVE (CHARTERED ACCOUNTANT) (634 Points)
Replied 21 March 2016

Interest on house property will be allowed as deduction u/s 24 to the assessee, who actually bears the interest cost and from whose account interest is paid.

1 Like

Jyothis (Article) (1127 Points)
Replied 21 March 2016

If both pay since it is a joint a/c loan,can both husband and wife claim sec.24 interest-But only husband has income from property (Entire income of house property in which loan taken is shown as income of husband.

Upgrade to CAclubindia Pro. Subscribe Now!

CA PRATIK DHRUVE (CHARTERED ACCOUNTANT) (634 Points)
Replied 22 March 2016

Irrespective of where rent income is shown, both can take interest as a deduction. Amount of deduction will be the actual amount of interest paid by each assessee.

1 Like

Ashok J (CA Final) (880 Points)
Replied 22 March 2016

Rental income must be divided between husb n wife n claim int as paid by them respectively....wen wife is also paying EMI husband cannot become full owner of house n taxing entire rental income in his hands is incorrect.......

1 Like