I was just reading your article on Loss from House Property capping of Rs 2 Lakh/annum from FY17-18 onward. One of my friend got me confused with his understanding on the provisions. Is there any limit on house loan interest capping also for let out property.
For example in case anybody has three properties which are let out, first one without home loan (net income=1.50 lakh), second one with home loan (net loss= -5000 Rs after home loan interest of rs 2 Lakh), third one with home loan (net loss =1.1 lakh after home loan interest of Rs 2.1 lakh).
Since cumulatively, net income is positive provision of loss under section 24 B doesn't apply and aggregated net income of Rs 35,000 in above case can be used for tax purposes....is my understanding correct in above illustrated case.
Pls advise.
1 Answers
Hi,
Yes, the maximum limit that one can claim as loss under the Head 'income from house property' is capped at Rs 2 lakh, even if one owns multiple properties (self-occupied or let-out).
However, in the above case, the total loss is well below Rs 2 lakh (ie Rs 5k + Rs 1.1 Lakh). So, the entire loss can be claimed.
Kindly go through section 24b in the below article @
https://www.relakhs.com/income-tax-exemptions-fy-2017-18-list/
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