Deduction of Int on Home Loan in case of Rented Property

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  1. PRASHANT SINGH

    PRASHANT SINGH New Member

    I have purchased flat for which
    I have taken loan from the bank amounting to Rs2550000/-(Twenty Five Lakh Fifty Thousand)
    The interest component is Rs250000/- per year.

    In lieu of the loan I am presently getting rebate of Rs200000/- deducted from my gross income against this interest Till date I have not rented out the flat, but If I rent out the flat say for Rs8000 per month. Will the rebate on interest under sec 80d continue with same amount or seize. and will the entire rent payble to me get added to my annual income of Rs648303.please clarify me.

    Also clarify me if I take joint loan with my wife for purchase of another flat in joint name. will the interest on that 2nd loan get also added to interest component of to be deducted from my gross income
     
    bhuvneshwar likes this.
  2. rudrabose

    rudrabose Active Member

    Dear Prashant

    The Deduction for Interest under Section 24 will continue to be provided to you even if you give the flat on Rent. Infact, for flats on Rent - there is no max limit of the amount of interest that can be claimed as a deduction.

    The Interest payable by you on the 2nd Flat can also be claimed as a Deduction from your Income
     
  3. rudrabose

    rudrabose Active Member

    For the rent received by you, Flat 30% deduction would be allowed and the balance 70% would be added to your Income.
     
  4. PRASHANT SINGH

    PRASHANT SINGH New Member

    Thanks Rudra butI have only1 property
     
  5. rudrabose

    rudrabose Active Member

    Request you to kindly re-explain the point that you have only 1 property??

    You said that you intent to take 2nd home loan so i guided you about the treatment of interest on 2nd loan.
     
  6. PRASHANT SINGH

    PRASHANT SINGH New Member

    Yes Rudra I was more worried about my rent query, Second query on home loan on joint name with my wife i forgot, But thanks a lot for your prompt reply, it will be great if you have any literature supporting to these guidelines.
     
  7. rudrabose

    rudrabose Active Member

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