Revised tax exemption on interest on home loan for rented property

Forums Budget 2017 Revised tax exemption on interest on home loan for rented property

Revised tax exemption on interest on home loan for rented property

I have a house in Noida which I have rented out, this is the only house in my name and a first property, I live on rent in Gurgaon. After this budget will the income loss out of rented property (1st house) be capped at 2 lakhs or the rule is for second property only. Will I be able to keep including the pre construction period interest (1/5) to the interest charged for the fiscal as that will increase the total loss beyond 2 lakhs.

Profile photo of Anuj Saxena Asked By: Anuj Saxena 1 replies 1 helpful answers Last Updated: 9 months, 2 weeks ago
  • Profile photo of Anuj SaxenaAnuj Saxena
    Participant

    I have a house in Noida which I have rented out, this is the only house in my name and a first property, I live on rent in Gurgaon. After this budget will the income loss out of rented property (1st house) be capped at 2 lakhs or the rule is for second property only. Will I be able to keep including the pre construction period interest (1/5) to the interest charged for the fiscal as that will increase the total loss beyond 2 lakhs.

  • Profile photo of Chetan ChandakChetan Chandak
    Moderator

    As per the proposed amendment total loss under the head house property which is allowed to be set off against any other source of Income is capped at Rs. 2 Lakhs. So going forward you will be able to adjust only Rs. 2 lakh against your other incomes other than the rental income.

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