The Hindu Business Line : One house too many

I OWN more than one house property. Can I claim the interest in respect of the housing loan for each of the properties as a deduction? Will the principal repayment on the housing loans for each of the properties qualify for rebate?

Srinivasan

Reply

You can claim the interest on the housing loan as a deduction in respect of any number of properties. The same will be true in respect of rebate on the principal repayment of the housing loan provided the loan is taken from employer in certain cases and from certain specified institutions or from the Government. Interest can be claimed subject to the following limits if the property is self-occupied:

If the property is purchased or constructed with capital borrowed on or after April 1, 1999, and if the purchase or construction is completed within three years from the end of the year in which the capital is borrowed — up to Rs.1,50,000;

In every other case — up to Rs 30,000;

There is no limit in respect of interest on housing loan if the property is let out; and

The principal repayment that will be eligible for rebate cannot exceed Rs 20,000 in the aggregate in a financial year and will also be subject to the overall ceiling provided under Section 88.

Srinivasan

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