Rent income from house earned in the United States

- If loan was used to purchase or for construction of the house property then it would be allowed. There is no limit to set off the interest element with the rent received. However, you can set off the interest with other sources only upto Rs.2 lacs and if it exceeds Rs.2 lacs then you have to carry forward it.

- It is advisable to deduct TDS on the interest paid. Retain loan documents and interest certificates from the lenders. Ask for Tax identification no.of the lenders.

For detailed discussion, please take a phone consultation

Hi 

You can set off interest against rental income only if loan was taken for construction or purchase of House.Excess interest can be set off against income from other sources upto 2 lacs. More than 2 lacs can be carry forward in next year.

If the loan is taken for construction or purchase of the house you can claim its deduction from rent income and after that you can deduct upto 2 lakh of interest on such house property from other sources income.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you.

Specifically there is no where mentioned in the act that only one can be deducted however on reading of few provisions there is a hint that only one loan can be taken against a property.

However do that loan certificates of both the loan and you might get the deduction.

The rent will be taxable in India. Regarding home loan are you making repayment within India or outside India. If the repayment is happening outside India, home loan benefit will not be available in India.

If home loan repayment is happening in India, then only home loan benefit can be availed.

Dear Sir,

Hope you are doing well !!

-Yes, you can claim a deduction under Section 24 for interest repayment on loans taken provided the purpose of the loan is purchase or construction of a property.

-From Assessment Year 2018-19 onwards, the maximum deduction for interest paid on Self Occupied house property is Rs 2 Lakh. For let out property, there is no upper limit for claiming interest. However, the overall loss one can claim under the head of House Property is restricted to Rs 2 lakh only. 

It is advisable to keep loan documents & interest certificates to claim the benefit.

You can also get the consultation from taxfull over the phone for further discussion.

Hello,

Since the interest payment is being made for earning an income(Rental) outside India, the interest deduction would be available, even though no taxes have been deducted.

Set off of the interest with other sources allowed only upto Rs.2 lakhs and in excess of Rs.2 lakhs, you will have to carry forward.

I hope this answer satisfies your requirements. 

Regards,

CA Hunny Badlani

Yes, you can take deduction of interest paid to the lender. You need to have interest paid certificate from the lender.

I dont see any issue if yo are paying interest more than the rental income. You would be able to claim loss under house property head (for maximum upto 2 lacs in a year).

There is no such restriction in the act which prohibits payment to two lenders. You need to obtain interest paid certificate from both the lenders

There is no such restriction in the act which prohibits payment to two lenders. You need to obtain interest paid certificate from both the lenders

No it is not true

Yes it is allowed.

You can set off the same.