What is the position if there is a loss under the head Income From House Property?
In case of self occupied property, as the Annual Value is taken as Nil deduction allowed on interest on borrowed capital up to maximum of Rs.100000/- will be the loss effective financial year 2000-2001. In case of a let out property there are no restrictions on deducting the full interest payable on loans and so there can be loss under this head also. Loss from house property can be set off against income from another house property and also from any other head of income such as Salaries, Profit and gains of business or profession etc. during the same financial year. In case where the loss cannot be set off against any other heads of income within the same year then the balance loss can be carried forward and set off in subsequent years subject to a limit of 8 years but only against income from house property.
