Treatment of Housing Loan Principal and Interest

Last updated at Dec. 16, 2024 by

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Person buys house 50 Lacs Makes down payment 10 Lacs Balance housing loan 40 Lacs Pays EMI 30000 pm Annual EMI 30000 × 12 = 360000 Principal Interest • It is covered in 80C • Max 150000 • It is covered in Loss from House Property • Max 2 Lacs loss Why it is loss from House Property Income from House Property is Rental Income from House If We are Ourselves living Rental Income = 0 Income From House Property = 0 From This We Can reduce Any Interest on Housing Loan (Suppose 30000) So we get Loss From House Property This loss Max allowed upto 2 lacs = 0 − 30000 = −30000

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.