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Deduction for Flat self Occupied

yogesh sheth (director) (94 Points)

16 June 2011

Dear Seniors, Iam having a Flat with book value of Rs 500000/-. Till a/c year 9-10 it was let out on rent and I was claiming 25% Repairs & Renewal for asserting the tax ( Rs 84000 rent recieved - Rs21000 for repairs and renewal = Rs63000 as Income from house hold property. But from A/c year 10-11 it has been self occupied by myself. So Kindly suggest whether I will be entitle to claim any repair and renewal expenses for my flat and adjust it with my other income. If yes kindly let me know the section of IT Act

Regards,

Yogesh Sheth

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4 Replies

CA Nitu Agarwal (CA, M.Com) (266 Points)
Replied 16 June 2011

If there is any rental income from house property, "gross rent less municipal taxes actually paid" is taxable. No repair exp can be claimed. However a standard deduction of 30% is available u/s 24(a). Also if assessee is paying any intt on housing loan taken on the said property then same is deductible-

fully-if property is let out

intt actually paid subject to max limit of Rs. 150000/ -- if self occupied.

Now in your case, as property is self occupied and you are paying housing loan intt. then u can take deduction u/s 24(b) as stated above.

1 Like

CA ADITYA SHARMA (CA IN PRACTICE ) (16719 Points)
Replied 16 June 2011

Originally posted by : Nitu Agarwal
	If there is any rental income from house property, "gross rent less municipal taxes actually paid" is taxable. No repair exp can be claimed. However a standard deduction of 30% is available u/s 24(a). Also if assessee is paying any intt on housing loan taken on the said property then same is deductible- fully-if property is let out intt actually paid subject to max limit of Rs. 150000/ -- if self occupied. Now in your case, as property is self occupied and you are paying housing loan intt. then u can take deduction u/s 24(b) as stated above.

agreed

1 Like

CS,CA F,Numrologi TusharSampat (CS CA F Numerologist Astrologer Graphologist Face reader Vastu Expert) (85930 Points)
Replied 16 June 2011

Originally posted by : Nitu Agarwal
	If there is any rental income from house property, "gross rent less municipal taxes actually paid" is taxable. No repair exp can be claimed. However a standard deduction of 30% is available u/s 24(a). Also if assessee is paying any intt on housing loan taken on the said property then same is deductible- fully-if property is let out intt actually paid subject to max limit of Rs. 150000/ -- if self occupied. Now in your case, as property is self occupied and you are paying housing loan intt. then u can take deduction u/s 24(b) as stated above.