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House Laon Interest limit please.

Tukaram Gaikwad (63 Points)

01 March 2019

please suggest me about house Loan interest limit during FY 2018-19

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Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 01 March 2019

Due to insertion of sub-section 3A under Sec 71, limit of interest on housing loan is restricted to Rs. 2 Lakhs in case of SOP

Also, in case LOP, loss from income from house property can be set-off upto Rs. 2 Lakhs only.

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Gaurav (SELF EMPLOYED) (100 Points)
Replied 01 March 2019

In case of SOP the limit is RS 2 Lakhs. However , in case of LOP the entire amount can be claimed.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 02 March 2019

@ gaurav... in case of lop, only 2 lakhs can be set-off against income from any other head

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Gaurav (SELF EMPLOYED) (100 Points)
Replied 02 March 2019

Yes it says that loss of RS 2 lakhs can be setoff against any other heads of income the remaining amount can be carried forward to the subsequent years. It is just limiting the set off of loss and not the interest amount that can be claimed under lop.

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 02 March 2019

Yes... The 2 lakhs limit is only for setting off and not in respect of interest amount in case of lop. If you have rental income of 10 lakhs and your interest on borrowed capital also 10 lakhs, then the entire 10 lakhs can be adjusted against rental income and the balance, if any, can be set-off to a maximum of 2 lakhs. In case of sop, interest itself can be claimed only up to 2 lakhs