Claim for deduction for int on home loan and pricnipal repay

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 I have two house property
- Current Residence - Owned by my Father-in-law. To be transferred thru will in my wife's name on his death
- I have bought a new property Jointly owned by me and my wife - I might not shift to the new property atleast for the next couple of years.

Can I claim deduction for interest & principal (u/s. 80c and 24)on home loan for the new property,though I am not/will not be reciding there since legally I have only one property in my name, as of now, and so treat it as my only self occupied house property? I am not claiming any HRA on the existing property where I am residing.

The address on the IT Returns will continue to be that of the property where I am staying currently. WIll this have any bearing on the claim related to the new property?

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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08 February 2013 Whether you reside in your new property or let it out, you will be able to claim deduction u/s 80C as well as section 24. In case of section 24 the amount of interest that can be claimed is capped at Rs. 1.5 lacs in case of self occupied property and actual interest paid in case of let out property.

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2013 Thanks Mr. Suraj for your reply. I understand the claims available under section 80C and 24. I am seeking for a clarification on the following:
Since, as of now, legally I will be having only property in my name, the new property will not be treated as a let property though I might not be residing in that property. Since legally i will be having one property in my name, there won't be any issue of treating as a Self Occupied House Property, though I might not be staying in that property.

CA Suraj Lakhotia

CA Suraj Lakhotia (Expert)
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08 February 2013 In my opinion,

In case of one property which is not actually let out, you can treat it as self occupied.

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