Set off of loss on house property against salary

[Guest]

I am an employee . Have taken Hsg. loan and given the house on rent . If I declare the net loss on house property ( due to interest outgo) to my employer , whether he can offset the loss on house property against the salary income ,while deduting TDS . Is there any bar in the IT Act / Rules / Notifications / Circulars that the above set off is applicable only when the employee resides in his own property . Your views please . with regards,

[Guest]

Net loss on house property is eligible for deduction against salary while deducting TDS. Such set off is available even when the property is let out, but in such case, the rent component should be taken as income while computing the house property income.

[surabhi agarwal]

loss under the head house property can not be set off against salary

AI Summary

Set-off of house property loss against salary for TDS may be permitted, though expert forum opinions conflict. The question concerns whether an employer may set off a net loss under House Property (from housing loan interest) against an employee's Salary for TDS purposes. One reply affirms such set-off is allowable and, if the property is let out, rent must be taken as income when computing house property income; a second reply disagrees, stating house property loss cannot be set off against salary.