Confused on calculationg home loan intrest.

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Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 Dear Experts,

Mr. Ram declared that he will pay Rs.1.25 lac interest amount of home loan in F.Y 2012-13. His taxable amount of salary is 3 lac (After deduction of all allowance & investments). Now my question is-

1 - Should company considered the interest amount & not deduct any TDS while calculating the tax on his salary ?

OR

2 - Should company deduct the TDS from his salary (300000-200000 = 100000 *10.30% = Rs.10300/-)& ask him to clam the refund while filing his return.

Amol S Joglekar

Amol S Joglekar (Expert)

02 August 2012 The income tax has given the permission to employers to consider the loss from house property to the tune of 1.5 lakh. The employer MAY take the cognisance of that.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 Thank you sir.

That means company should not deduct the TDS from his salary ?

Amol S Joglekar

Amol S Joglekar (Expert)

02 August 2012 No not at all. It is advisable that company either takes a declaration from the employee or a provisional housing loan certificate (Normalyy provided by private banks like ICICI, HDFC, Yes, Axis etc)

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 That means company will show the taxble amount of Mr. Ram Rs. 3 Lac in Form 16 but will not mention any amount (Zero) under the head Tax Deducted ?

Amol S Joglekar

Amol S Joglekar (Expert)

02 August 2012 either company can show in any other income reported by employee as los 1.25 lakh or it can show as loss from house property.

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 Thanks you sir. now all doubts r clear :)

Querist : Anonymous

Querist : Anonymous (Querist)

02 August 2012 One final question.

If we will show the interest part of home loan in form 16 (under loss from house property Rs 1.25 Lac)then Mr. Ram have to fill which form. ITR -1 Or ITR -2 ?

Amol S Joglekar

Amol S Joglekar (Expert)

02 August 2012 ITR2 is advisable.

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