Carried forward loss of interest on housing loan where the property is sold

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  1. Anoop Sharma

    Anoop Sharma New Member

    I have two house properties purchased out of loans and both are let out . There is net carried forward loss under income from house property and in fact if we segragate, both the properties are having loss c/f on account of interest on housing loan net after rent received. Now I propose to sell off one property. My query is :
    - Do I adjust the brought forward loss in respect of the property being sold against sale consideration as cost of acquisition, or
    - I continue to carry forward and set off the the brought forward losses for both the properties to the following years and set off against rental income from only one property and pay LT Capital Gain on the property under sale without adjustment of brought forward interest on Housing Loan on that one.
     
  2. Parul_Gupta

    Parul_Gupta Active Member

    The Loss arising under head House Property for the year in which the Asset has been sold can be set-off against the Capital Gains.

    The Loss arising under head House Property for previous years can only be set-off against income under head House Property.
     
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