Claim rent from my father for declaring house as let-out

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gururaj (Querist)
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01 January 2014 I have a query regarding Income tax w.r.t Housing Loan and HRA
I own a flat in Bangalore and I am currently staying in the same flat with my parents.
I am paying around 3.5 lakhs towards Interest and 55k towards principle.

I know that

1) I am not eligible for HRA deduction
2) I am eligible for 1.5 lakhs interest exemption
3) under 80C, I am eligible for Principle payment

But my question here is

If I receive Rent from my father (since he is staying with me in the same flat), my house would become a Let-out property so that would I be able to claim the entire interest amount? But I will not claim any HRA exemption

Please advice, Thanks

Regards,
Guru

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 January 2014 Yes. You are right in your analysis.

Message likes : 1 times

gururaj

gururaj (Querist)
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01 January 2014 Thank you very much Sir

gururaj

gururaj (Querist)
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01 January 2014 One quick question sir, I am staying in the same house along with my father. In that perspective, can I claim rent from my father and show it as let-out property? I am doing this because if i show it as Let-out property, I can claim the entire interest exemption.

Additional note here is

1) Will not claim any HRA
2) Will show Rental income as nominal one.

Thanks in Advance,

Guru

Nikhil Kaushik

Nikhil Kaushik (Expert)
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01 January 2014 well you can do so. But with regards to nominal rent, you need to ensure that your gross annual value computation is correct. Please refer https://www.kcgjournal.org/Commerce%20and%20Management/Issue%203/Harish.html

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