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Urgent query about House Property (HP)...!!!

Sagar (sd) (44 Points)

15 July 2011

Hiii all,

         I've got some query the deatils as follows

1. Assesee is Female Salaried Employee.

2. She is planning to buy house property on loan.

3. She already has a property at her job place.

4. Can she allow Interest on loan as deduction as u/s 24 and to wat extent if

- New Property is also self occupied?

- New Property is let out?

5. If Prop. is let out then how can she obtain certificate showing Municipal Valuation, Standard rent, etc?

   Does she supposed to take seperate certificate for each detail?

6. Can we show losses under letting out of property?

7. Wat if she has loan outstanding for the current self occupied property?

   Can she get deduction of interest for both the loans?

Plss reply soon......thanx a ton...!!!

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2 Replies

valji (Accounts manager-MBA) (2150 Points)
Replied 15 July 2011

if does not make any diffreance for getting exemption of intererest whether property SOP or LOP

standered rent is on assumption basis depend upon the area in which proerty is located

for municipal vaue get from area of muncipal office

you can show the loss depend upon calculation of house property with consider LOP rent & other exemption

no she cannot get exemption for both the loan

check view of other also

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kamal kishor sen (STUDENT Rajasthan) (2156 Points)
Replied 15 July 2011

Deduction in computing income tax from house property u/s 24 of income tax act: - the following deductions are allowed in computing the income from house property.

Statutory deduction @ 30% of net annual value section 24(a):- where a house property is let out or deemed let out, statutory deduction @ 30% of net annual value is allowed in computing its income. This deduction is not to be allowed in respect of a house , occupied by the owner for his own residence or kept vacant for self-occupancy, fulfilling the conditions of section 23(2)(a) and 23(2)(B) .

Interest on borrowed capital sec 24(B):- where the property has been acquired, constructed, repaired or renewed with borrowed capital interest on such borrowed capital is allowed as deduction in the following manner.

1- house occupied by owner, deduction for interest restricted to rupees 30000: where

- the property is in occupation of the owner for the purpose of his own residence or

- It can not be occupied by the owner by reason of the fact that owing to his employment, business or profession, being carried on at other place, he has to reside at other place in a building not belonging to him.

2-Relaxation of the limit to rupees 150000:- however, the limit of deduction for interest on borrowed capital has been relaxed to rupees 150000 in case the following conditions are satisfied:

- The property is acquired or constructed with capital borrowed on or after 1 April 1999; and

- Such acquisition or construction is completed with in three years from the end of financial year in which the capita; was borrowed.

Certificate of interest to be furnished by the assessee. The deduction of such interest is allowed by provided the assessee furnishing a certificate from the person to whom any interest is payable on the capital borrowed.