Most of the salaried class have their own houses. These are classified into:
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Self-occupied house property
(property used by the owner).
Let out properties. The assessee
can claim deduction for interest paid on housing loan in respect of self -occupied
property
Deduction limited to Rs 30,000 if
loan taken before April 1, 1999.
Rs 1,00,000 if loan is taken on
or after April 1, 1999 and construction completed before April 1, 2003. (This has been
enhanced to Rs 1,50,000 in Budget 2001, applicable for assessment year 2002-2003.)
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No other deduction is available. One can, however, claim
rebate under Section 88 on the principal portion of housing loan repayment up to 20 per
cent of Rs 20,000.
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