Hi
1. I own an apartment (with my wife as co-owner)which we have let out and on which the home loan has been paid-off.
2. Currently we stay in a rented apartment on which my wife claims tax deduction on House rent paid.
3. We are contemplating buying another house (as an investment) in a different city.
I would like to know whether:
a) I can claim tax exemption on interest paid for purchasing the new apartment and if yes, to what extent?
b) Can I continue staying in the existing flat on rent and show our owned property (old house on which home loan has been paid and the house is now rented out)as a self occupied property?
c) So, effectively, can we continue to claim tax exemption on House rent paid as well as the interest paid on home loan to be taken for purchasing the new property?
Would appreciate any help from you. Thanks.
CAclubindia
