Loss of income - let out property - Income Tax

Loss of income - let out property

Page no : 2

CA Hardik Bunha (self) (2121 Points)
Replied 19 December 2011

hI,

iN YOUR CASE COMPUTE house propery income as one owner holds property then total income from house property (AFTER DEDUCTION U/S 24(B)) will be distributed in both co-owners.

One of the important point in your case is your wife is deemed owner u/s 27 but not a co-owner.

Kindly all income from house property will be taxable in your hand and deduction u/s 24(b) is deductioble to Rs. 1,50,000/- IF SELF OCCUPIED.

Raman (Salaried) (78 Points)
Replied 19 December 2011

Treatment of income is clear to me now. In this case can anyone explain about deduction u/s 80c on principal repayment.

In this case if owner is salaried employee can he also claim deduction u/s 80c for principal repaid. Say for e.g rental income 15k pm , interest paid during the year 3,00,00 and principal repaid during the year 50k. Can owner say that loss on house property = 1,80,000-3,00,000 = -1,20,000 and for 50K repaid can he include that with his other investments and claim deduction u/s 80c.

Pls clarify.