The Hindu Business Line : Housing loan from employer

I HAD availed myself of a housing loan from my employer in 2001. I have been claiming rebate under Section 88 in respect of the principal repayment and claiming as a deduction the interest on the said loan against my rental income. I now propose to purchase another house property availing a loan from a bank or financial institution.

Can I claim the interest on this fresh loan as a deduction against the rental income from the new property, which I propose to let, over and above the interest that I am already claiming as a deduction in computing my income from the existing property? It may be noted that the existing property is also let.

Can I give the particulars of loss from both the properties to my employer to be reckoned in computing the tax to be deducted on my salary? Since the interest payment exceeds the income from the properties, a loss will result in computing the income from both the properties.

S. Sridharan

Reply

The questioner can claim as a deduction the interest on the fresh loan taken to acquire the new property against the rental income from the said property. The interest on the earlier loan taken from the employer can also be claimed as a deduction against the income from that property.

Particulars of loss from both the house properties can be given to the employer who should take into account the same in computing the tax to be deducted on the salary of the employee.

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