Claim Deduction, 
Residential Properties, 
Sec 80C
Claim Deduction, Residential Properties, Sec 80C

You Can Claim Deduction On Any Number Of Residential Properties Under Overall Limit Of Sec 80C

In case of more than two properties, you have to offer notional rent on the other properties and treat them as let-out. F&O trading and intra-day trading are treated differently under income tax laws

I am a resident of India. I want to know how many residential properties I can own at any given point of time. Is there any limit on the tax benefits I can claim in respect of loan for more than one house?


There are no restrictions as to how many properties you can possess at any given point of time as long as you can explain the source of its investment. In case you occupy more than two self-owned properties for your or your family’s use, you have to choose two of the properties as self-occupied and treat the others as let-out and offer notional rent for taxation purpose.

Also note that there are no restrictions under the banking laws as to the number of home loans you can take at a time as long as your earnings are sufficient to service the home loans.

Under Section 80C of the Income-tax Act, 1961, you can claim deduction on any number of residential houses within the overall limit of Rs. 1.50 lakh in a year along with other eligible items for principal repayment of home loan, whether self-occupied or let-out.

As far as deduction for interest paid under Section 24(b) on money borrowed for buying, constructing, repairing, or renovating a house, the same can be claimed for any property, whether residential or commercial. The deduction for interest for self-occupied properties is restricted to maximum of two properties taken together, up to Rs. 2 lakh per annum.

For let-out properties as well those deemed to have been let out, the full interest paid can be claimed, but the loss as computed under the income tax laws under the head ‘house property’ can be set off up to a maximum of Rs. 2 lakh against other income, excluding salary. The loss not so absorbed during the year can be carried forward and set off in the next eight years against house property income.


Can we include futures and options (F&O) and intra-day trading as a speculative business income while filing an income tax return (ITR)?


F&O and intra-day trading are treated differently under income tax laws. Any share transaction, which is settled otherwise than by actual delivery of shares is treated as speculative income under income tax laws.

Since intra-day trading of shares are squared off during the same day without actual delivery of the shares, the same would be treated as speculative business. Any loss under speculative business can only be set off against speculative profit earned during the same year, and the loss not set off has to be carried forward for set-off against speculative profits in four subsequent years.

However, the transaction in derivatives, which is popularly known as F&O, is not to be treated as speculative transaction due to the express provision of Section 43(5). Since the transactions in F&O are not treated as speculative transactions, the loss in respect of F&O transactions can be set off against any other income except salary income during the same year.

Any unabsorbed loss has to be carried forward for set-off against business income, whether speculative or non-speculative business, in eight subsequent years.

The author is a tax and investment expert

(Disclaimer: Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)

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