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House property

27 December 2017

if rs. 45000 taken as loan for repairs of house and the house is let out for 3 months and for remaining is vacant.
treatment of loan ??

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16 Replies

Kajal Yadav (32 Points)
Replied 27 December 2017

and paid rs 4500 as interest in previous year

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kumar (CA-Final) (113 Points)
Replied 27 December 2017

Question is unclear... Loan amount₹45,000& interest ₹4,5000 . . can you elaborate

kumar (CA-Final) (113 Points)
Replied 27 December 2017

Interest on loan borrowed for let out property is fully deductible..if ₹ 4,500 is pre-construction interest then it will be apportioned over 5 years

Krishna Senthil (13 Points)
Replied 27 December 2017

interest deduction for loan taken on repairs is not allowable

Krishna Senthil (13 Points)
Replied 27 December 2017

this loan should be treated as undeductible expensr

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RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 27 December 2017

interest on loan taken for repairs allowable subject to a maximum of 30000

RAJA P M ("Do the Right Thing...!!!") (128096 Points)
Replied 27 December 2017

I think the loan from Private Finance...!?

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 27 December 2017

private finance also allowed...

Krishna Senthil (13 Points)
Replied 27 December 2017

interest on loan taken for anything other than acquisition or construction is disallowed

Krishna Senthil (13 Points)
Replied 27 December 2017

standard deduction is for all these remaining stuff expenses(sec 24(1)) is 30% of net annual value

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RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 27 December 2017

@ krishna Senthil pls refer section 24(b)

RAMAKRISHNAN R (INCOME TAX OFFICER) (1736 Points)
Replied 27 December 2017

annual value;

23[b] where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any interest payable on such capital:

Provided that in respect of property referred to in sub-section [2] of section 23, the amount of deduction shall not exceed thirty thousand rupees :

chirag (Student CA Final ) (24 Points)
Replied 27 December 2017

two things

one
for HP if let out than all interest expense can be claimed as interest expense

two
for self oucupted limit of Rs 200000 and ₹ 30000 applicable

₹2 lacs for purchase and Construction
₹30000 for repair

Narayana Reddy Svv (29 Points)
Replied 28 December 2017

for letout HP,any change in the position in current FY. .?
some are saying that there is maximum cap of 2 lacs. for letout part also. pl clarify. .sandeep ji. .