I have a self-occupied house as well as another house which is let out. I have acquired both of them by borrowing, the interest for each of which exceeds Rs. 1.50 lakh. I am informed that there is a ceiling of Rs. 1.50 lakh to be allowed as deduction against property income. Is the ceiling with reference to each property or it is an over all ceiling?

Sec. 24(b) allows interest on borrowed capital for acquisition, construction, repairs, renewal or reconstruction. However, a ceiling is placed only in respect of interest payable on capital borrowed by self-occupied property at Rs. 30,000, but enhanced to Rs. 1.50 lakh, if the borrowing is on or after April 1, 1999. Since self-occupation benefit is allowed only for one house, the question referred to by the reader as to whether the ceiling is meant for one or more houses does not arise.

As for as let out property is concerned, there is no ceiling for deduction.