Home loan taxation : 2 houses

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Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2010

I have 2 home loans – one for the house Im staying in (Bangalore) and another rented out (Chennai). Last year I had classified my Blore house as self occupied and Chennai as rented out. Since the income from property (chennai) was lower than interest outgo I had claimed tax refund while filing return last year. Even after a year I havent got any till date. For this year can I
1)put my Blore house as rented and Chennai as self occupied because I have a higher interest component on my Chennai home which can be deducted from my taxable income (since this will be done by my office accounts – im sure to get this benefit unlike tax refund which I may never get !!

Is this allowed – considering I stay and work in Blore ?

2)How long do these tax refunds take ?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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15 April 2010 No, you are staying & working at Banglore, how can you shown Chennai house as self occupied. and Banglore house as rent out.

It is suspicous, because you will file return from Banglore address and shown self occupied property at chennai.

As per my view, you have to shown banglore house self occupied and chennai house as let out.
Other expert's view is solicited.

Querist : Anonymous

Querist : Anonymous (Querist)

16 April 2010 Thanx Mr Bansal. I keep reading lot of articles on the net which keep repeating that you have the option of changing your SOP and Rented property year on year depending on which one saves you higher tax - hence the query

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