Buying a third house.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 November 2013
Dear Sir,
I own a house in joint name with my wife.
I have investd in a second house, in joint names,by taking a home loan, and have given this house on rent. Now If I buy a third house, again for investing ,would it be advisable ? what are the tax implications ?
Please guide.
I own a house in joint name with my wife.
I have investd in a second house, in joint names,by taking a home loan, and have given this house on rent. Now If I buy a third house, again for investing ,would it be advisable ? what are the tax implications ?
Please guide.
CA.Manoj Jaiswal
(Expert)
16 November 2013
Tax implication on buying a 3rd house
1) Your third house or first house will be taxed as property deemed to be let out under the head income from house property.
2) At present you cannot claim exemption under section 54F since you own 2 house property. So buying one more property won't affect this area.
3) Further, the amount paid as stamp duty and registration charges at the time of purchase will be eligible for deduction under Section 80C.
You can invest in third property.
1) Your third house or first house will be taxed as property deemed to be let out under the head income from house property.
2) At present you cannot claim exemption under section 54F since you own 2 house property. So buying one more property won't affect this area.
3) Further, the amount paid as stamp duty and registration charges at the time of purchase will be eligible for deduction under Section 80C.
You can invest in third property.
Nikhil Kaushik
(Expert)
16 November 2013
yes it is advisable.
Investment in real estate continues to be one of the safest and remunerative investment in India.
the said property, if kept vacant, shall be considered as deemed let out property and accordingly taxed under "Income from house property". In case you rent it out, you pay taxes as usual.
Investment in real estate continues to be one of the safest and remunerative investment in India.
the said property, if kept vacant, shall be considered as deemed let out property and accordingly taxed under "Income from house property". In case you rent it out, you pay taxes as usual.
Nikhil Kaushik
(Expert)
16 November 2013
you may refer to this article for a clear tax implication on income side:
https://articles.economictimes.indiatimes.com/2013-04-30/news/38930030_1_dwarka-flat-rohini-ankit
https://articles.economictimes.indiatimes.com/2013-04-30/news/38930030_1_dwarka-flat-rohini-ankit
Nikhil Kaushik
(Expert)
16 November 2013
Dear Manof, 54F is anyways not relevant to this case as the assessee will anyways use Section 54.
CA.Manoj Jaiswal
(Expert)
16 November 2013
Dear Nikhil,
I have given a broader view that the assessee cannot claim exemption u/s 54f in case he has capital gain arising on account of any other asset.
I have given a broader view that the assessee cannot claim exemption u/s 54f in case he has capital gain arising on account of any other asset.
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