My cousin working in a State Govt. have this problem. He has got a house let out and he submitted loss on housing property around Rs.195 lakhs as his loan quantum is around Rs.30.00 lakhs. His DDO is not accepting the concept that no ceiling for let out properties. His contention is that Rs.1.50 lakhs for both self-occupied and let out as well. Kindly through light on this.
7 Replies
Deeps
(Article Assisstant)
(2485 Points)
Replied 01 November 2009
The ceiling limit of Rs. 1,50,000 or Rs. 30,000 is prescribed for self-occupied property in respect of interest on loan borrowed and it does not apply to a deemed let-out property.
mudassar
(ca final)
(134 Points)
Replied 01 November 2009
if the house is a let out one, then there s no ceiling on the interest, only if its self occupied for the whole year(that is not let out even for a single day ) then the 1.5/30k int ceiling is aapplicable.
triumph-CMA
(Chartered Accountant)
(503 Points)
Replied 01 November 2009
Ceiling limit for interest on borrowed capital is applicable in the case of House property covered under section 23(2) (a) that is in the case
(i) self occupid property
(ii)If Property could not be occupied due to the resons of employment or business of the owner at some other place [23(2)(b)]
For any other case there is no ceiling limit.
RAKESH
(Almost CA)
(2199 Points)
Replied 01 November 2009
there is no ceiling limit for let out portions . for self occupied property
Rs. 150,000 - if for construction
Rs. 30,000 - if loan taken for renewal of the same.
Navneet Garg
(Chartered Accountant)
(70 Points)
Replied 01 November 2009
There is no ceiling limit regarding interest on let out house property. hence deduction can be claimed..
santhosh
(Student)
(1174 Points)
Replied 02 November 2009
ya... it's rite... no ceiling limit for interest in let out property...
Pradip Srinivasan
(CA Final)
(869 Points)
Replied 02 November 2009
S the ceiling limit is for self occupied, not for let out.
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