Mr. Manas owns two house properties one at Bombay, wherein his family resides and the other at Delhi, which is unoccupied. He lives in Chandigarh for his employment purposes in a rented house. For acquisition of house property at Bombay, he has taken a loan of ₹ 30 lakh@10% p.a. on 1.4.2019. He has not repaid any amount so far. In respect of house property at Delhi, he has taken a loan of ₹ 5 lakh@11% p.a. on 1.10.2019 towards repairs. Compute the deduction which would be available to him under section 24(b) for A.Y.2021-22 in respect of interest payable on such loan.
Answers
Answer:
Explanation:
Mr. Manas can claim benefit of Nil Annual Value in respect of his
house property at Bombay and Delhi, since no benefit is derived by
him from such properties, and he cannot occupy such properties due
to reason of his employment at Chandigarh, where he lives in a rented
house.
Computation of deduction u/s 24(b) for A.Y.2021-22
.
Particulars `
I ..Interest on loan taken for acquisition of residential
house property at Bombay
30,00,000 x 10% = ` 3,00,000
Restricted to ` 2,00,000 = 2,00,000
II Interest on loan taken
for repair of residential
house
property at Delhi
` 5,00,000 x 11% = ` 55,000
Restricted to ` 30,000 = 30,000
Total interest = 2,30,000
Deduction under
section 24(b) in respect of
(I) and (II)
above to be restricted to
2,00,000