Husband and Wife, both salaried individuals and tax payers, jointly buy 2 flats in joint names and also take 2 house loans in joint names but do not move in any of the flats and are migrating abroad. The flats are put on rent. Each flat will fetch an annual rent income of approximately 2L, so total income is 4L. They intend to foreclose the Loans ASAP.
Assuming, no other income in India except these rental incomes, what will be the India tax liability for each of them, when they file return from abroad as non residents ? Any advantage in letting the loans continue ?
Regards
CAclubindia
