Treatment of interest outflow on borrowed capital for a house property?



Is the deduction of interest on borrowed capital for acquisition of house property (total annual value) on a let out house property unlimited. E.g. if the interest outflow on the borrowed capital is INR 5 Lacs and income from rent received is just INR 1 lacs, the deduction can be allowed for INR 4 Lacs?

Treatment of interest outflow on borrowed capital for a house property?
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2 Replies to “Treatment of interest outflow on borrowed capital for a house property?”


  1. Yes, there is no limit on amount of deduction on interest on borrowed capital in case of let out properties. The limit will apply only in cases of house properties self occupied by the owner. Thank you





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