Income from House Property

 It is let out. Benefit of section 23(2)(b) is available only when the owner is not able to occupy his house due to the reasons of employment or business. But the houuse must not be put to any other use. Since in this case the house is let out , Therefore the benefit can not be claimed and house will be treated as LET OUT.

So, we can not claim for Interest, Right ?

As the house is let out, you have to declare the rent under "Income from House property" and it is more beneficial. If it is let out,  total loss to be shown under the head income from house property will be like this:

    Annual Rental                                                          Rs. 60000

    Less: Municipal tax (if any)                                                    0

    Annual  Rental Value                                             Rs.   60000

    Less :Standard Deduction @ 30%                     Rs.   18000

               Intersst on Borrowings                               Rs.  255000

    Loss under House property            (-)                Rs.  213000      

   As the house is let out, interest is fully deductible without any limit.

Agree with Mr. Sudhakar Shetty V.K

The house is let out for a rent.

It cannot be treated as self occupied because the house of Mr. A is not used for his self occupancy.

Hence, Deduction u/s 24(a) and 24(b) is allowed.

I Agree with CA. Sudhakar Shetty's valuation.

The House is Let Out property & Taxed as Income from HP.

Accomodation given by company to Mr. A is taxable as perquisite and rules apply for provision of accomodation by company.

Thanks for your comment Sir,