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Interest on housing loan

jhonny (NA) (156 Points)

17 July 2014

Dear friends,

An assesse has got 2 houses. He has seperate housing loan for each house. Both are self occupied properties. Can the assesse claim interest on housing loan for both houses?

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2 Replies

Anantha Subramanian (Student CA IPC / IPCC) (131 Points)
Replied 17 July 2014

calculate house property income considering one house as self occupied and other as deemed let out property... u can claim interest for both the propeeties.. for self occupied maximum deduction allowed is 1,50,000 and for deemed let out no limit.... and after all deduction sum up the income of both house and keep it aside..

after that do the same way again bt taking self occupied there as deemed let out now and vice versa... i.e, if in case I: house 1 is self occupied and house 2 is deemed let out... then in case II take house 2 as self occupied and house 1 as deemed let out.. and apply the same limit on deduction....... then sum up the bot income in case II...

compare income from case I and case II... show the lower of these two as income..

don't forget to deduct 30% of Net Annual Value for deemed let out property in both cases.. for self occupied 30% on NAV doesnot apply as NAV is always nil for self occupied house.....

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Tribhuvan Aditya Singh (Student as well as Self-employed) (3710 Points)
Replied 17 July 2014

intt. on housing loan can be claimed for both houses... but any one of the two will be deemed to be let out property and then income from house property to be accordingly calculated.