house is treated as nil. So, the entire interest paid for it becomes a loss from house property, subject to the R1.5-lakh limit. House property losses can be set off against income from any other head, including salary, in the same financial year. The remaining losses can be carried forward up to eight FYs. In subsequent FYs, such a loss can be set off only against income from house property.
The writer is managing partner, Nangia & Co. Inputs from Neha Malhotra