Interest on Housing loan

INTEREST ON HOUSING LOAN:

Interst on House Loan is an important aspect of tax planning.
As per provisions if you have taken any house Loan, the Interest on said loan is subject to deduction. This is irrelevant whether the house is self occupied or let out.

Interst on house loan if it is self occupied can be availed to the maximum extent of Rs.150000/- only.

As per second provision, if the house is let out, you can avail deduction of actual amount of interst paid during the preceeding financial year(P.Y).

Interst is deductible on actual payment basis, not on due basis.

If you have more than one house and you have taken loan for acquisition or constructruction of the houses, you can still claim deduction for all houses, except for the self occupied house. On self occupied house you can claim only Rs.1,50,000/- maximum.

The format is as under:

Anual rent received:                                                                          XXX
Less:Un realised rent:                                    XXX
          Tax paid to Municpal authority           XXX
                                    Total                             XXX                          XXX          

                                    GAV                 a                                               XXX
Less: 30% on above                                       XXX
          Interst on House Loan
          IF Self Occupied                                   (Actual amt, Max,1,50,000)
          If Let out                                               (Actual Amount)
                                                                        _________________
                                 Total                     b         XXX                              XXX

        Income from House property   (a-b)                                           XXX