In the 2019 budget there was a proposal that notional rental income from second self occupied/vaccant house property (even if in the same city???) need not be presented as income. Is this proposal approved now? If yes, and if there is a home loan on such second house (un-rented); then the interest paid can be deducted under sec 24? Thanks Bhagat
If yes, then what is the maximum deduction for the interest under sec 24?
Dear Sir,
Hope you are doing well !!
Yes, notional rent earned from the second home is exempted from taxation from FY 2019-20.
However, the interest benefit allowed is restricted to Rs 2 lakh i.e. the interest deduction under section 24 to Rs 2 lakh for both the houses put together.
If the second house is treated as self-occupied property, then the interest deduction available on housing loan under section 24 for both the houses will be restricted to the aggregate of Rs 2 lakh.
Also, carry-forward benefit is available only for houses that are rented out or treated as rented with notional rent and not for self-occupied houses.
Hi
Yes, that was approved.
Yes, interest deduction shall be allowed.
The maximum deduction cumulatively for both SOPs shall be 2 lacs.
Hello Sir,
Yes, that proposal was approved.
The interim budget 2019 increased the number of houses you can claim as self-occupied to two. If you own more than two houses, you can claim any two of them as self-occupied and you do not have to pay tax on notional rent for them.
The maximum interest deduction u/s 24 shall be Rs 2 lakh for both SOPs.
Yes it is.
Yes but maximum upto 2 lakh of both house combined.
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Thank you
Maximum 2 lakh.
What more you want to know.
Hello,
Yes, the same is applicable from the F.Y.
Yes, deduction under Sec. 24 would be available for the second house.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
The maximum deduction that can be claimed would be Rs. 2 Lakhs.