In case of a salaried employee, if he has only one residential flat which is let out, can the loss on that let out property be incorporated in Form16 being issued by the employer? Say for example,
- Total annual salary of the employee is Rs. 10 lakhs
- He has one flat which he has purchased by taking loan and paying interest to the bank to the tune of Rs.5 lakhs every year.
- His loss from let out house property is Rs.3 lakhs after adjusting for rent.
Q1. Is it allowed to incorporate this loss of Rs.3 lakhs in form 16 to be issued by the employer?
Q2. If it is not allowed to report it under form 16, then does it need to be incorporated in the return and TDS to be claimed?