Bibhuti Bhusan Das (Financial Analyst) (144 Points)
22 November 2011Dear All,
What is the maximum limit of exemption for a letout property & self occupied property individually ?
And, A salaried person have 3 houses, First house is self occupied ( Int on borrowed capital Rs 1,33,000/-), 2nd house is let out & rent income is Rs 1,24,000/-( Int on borrowed capital is Rs Rs 1,20,000/-) AND 3rd house remain vacant (int on borrowed capital is Rs 55,000/-)
Pls suggest, what will be the exempted interest amount of the above.
Thanks in advance
Rgds
Bibhuti
Phalgun
(Audit Manager)
(327 Points)
Replied 22 November 2011
a) In case of three houses : One is SOP not taxable. Interest on loan is exempt upto Rs.30000(if loan is taken on or before March 31 1999), loan taken on or after 01st april 1999 - Interest exempt upto Rs.150000
b) In case of another SOP (it is treated as deemed let out). For Let out Property interest exempted amount - No limit
C) Pre construction period interest is als allowed Pre construction period refers to period starting from the date of borrowal of loan & ending on date of repayment or 31st of march ending immediately in the year of construction or purchase or reconstruction of the property(whichever is earlier).This interest is allowed in five equal installments.
d) Apart from this in case of Let out property Municipal tax paid is allowed. A standard deduction at 30% is also allowed.(GAV-municipal taxes = NAV). On NAV 30%.
Z
( )
(2965 Points)
Replied 22 November 2011
For house property let out or deemed to be let out , WHOLE amount of interest is allowed (certificate of interest payable must be given for claiming exemption in both (let out or deemed to be let out or self or deemed to be self occupied) the cases
For self occupied or deemed to be self occupied 30,000 or 150,000 as the case maybe
(150,000 is allowed if Loan is taken for acquisition,construction and if construction is completed within 3 years)
The assesse has an option to choose any of the house as self occupied (other than let out)
Since interest on let out and deemed to be let out is fully allowed as deduction
Sir can you give more info in regards to Municipal value, Fair rent and standard rent and also LOSS DUE TO VACCANCY?
Treatment by Phalgun is correct (I posted later, the tab was open)
CAclubindia
