Interest from 2nd property

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  1. raviphulsundar

    raviphulsundar New Member

    Dear Sir/Madam,
    I am working in A city, my parents and brother staying in B city. In 2004 i took property with home loan. I have repaid complete loan recently. Now that property is given for rent, which I am declaring in office for "income from house property". Now we r planning to buy another property in B city with home loan. If we stay in this property, then how much intrest i can claim under section 24 ??
  2. ZED

    ZED Well-Known Member

    For the self occupied property, the interest deduction would be restricted to Rs. 200,000 and a further deduction of upto Rs. 50,000 u/s 80EE provided conditions mentioned therein are fulfilled.

    Let me know if you need any clarification. The provision has been cited for your reference.

    80EE. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential property.

    (2) The deduction under sub-section (1) shall not exceed fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2017 and subsequent assessment years.

    (3) The deduction under sub-section (1) shall be subject to the following conditions, namely:—

    (i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2016 and ending on the 31st day of March, 2017;

    (ii) the amount of loan sanctioned for acquisition of the residential house property does not exceed thirty-five lakh rupees;

    (iii) the value of residential house property does not exceed fifty lakh rupees;

    (iv) the assessee does not own any residential house property on the date of sanction of loan.

    (4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

    (5) For the purposes of this section,—

    (a) "financial institution" means a banking company to which the Banking Regulation Act, 1949 (10 of 1949) applies, or any bank or banking institution referred to in section 51 of that Act or a housing finance company;

    (b) "housing finance company" means a public company formed or registered in India with the main object of carrying on the business of providing long-term finance for construction or purchase of houses in India for residential purposes.
  3. raviphulsundar

    raviphulsundar New Member

    Thanx for your reply..

    If my 2nd property is occupied by my parents and not me & my wife, even then it will be called as "Self Occupied" ?
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