Can I Claim Full Interest on My Rented Property and Offset Loss Against Salary? Seeking Guidance for AY 2009-10

Hi,

I purchased the house in 2007 and rented it out to a company. I need to know if I can claim full interest under section 24(b) and offset the loss against my salary income since the property is rented out.

Is there any CBDT circular regarding this matter for the Assessment Year 2009-10?

Regards

Yes, you can claim full interest. You also need to declare rental income as per the Income Tax Act.

The loss from House property can be set off against Salary Income.

Thank you for your reply.

Do you have any:
1) CBDT circular on this in the recent past for the AY 2009-10?
2) How can I justify to my Finance Department to calculate my TDS?

You can claim full interest, but you would have to calculate the loss from the house property after considering your rental income for the year.

Further, you can claim the amount of principal repayment as a deduction under Section 80C.

To avail the benefit from your company, you would need to furnish a provisional statement from your lending bank stating that you have availed a loan from them for the purpose of buying/constructing a house property. The statement should also separately state the amount payable towards principal and interest for the financial year.

Hope this information helps you.

Thanks & Regards,
Avika Kapoor