For more than one house, any one house can be chosen as self-occupied while total of all rents will be treated as income for the year. If a non-self-occupied house is not rented, a notional rent, based on the rent that property is expected to normally fetch, is taxed. Interest portion of EMIs of all home loans is eligible for tax benefits under IT 24(b). If income under the head ‘house property’ is negative (loss), such loss can be offset against other taxable income, subject to a maximum of Rs 2 lakhs per year. Balance can be carried forward for maximum next 8 assessment years for adjustment. Under Section 80C, Principal portion of all housing loans is eligible for tax deduction upto Rs 1.5 lakhs.
These deductions are available only if the house is under possession. Repayments of loan taken from friends and relatives, are not eligible for this deduction.
