House poperty

This query is : Resolved

MIRAJ MAKHECHA (Querist)
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17 September 2011 Dear Experts

Firstly very good morning to all....

I want to know that if an assessee having two houses. In one house assessee himself is staying and in another house their children are staying in another city. Now my que is whether interest can be claimed for the loan taken of both the houses or not????

Do assessee need to show the other house as DLOP??

Both the house is in the name of the assessee...

Thanks in advance

Kindly reply soon....

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 September 2011 Since both the houses are in the name of the assessee he will have to show one house as self occupied and the other as deemed to be let out.

Further, he can claim the deduction for interest in respect of both the houses.

MIRAJ MAKHECHA

MIRAJ MAKHECHA (Querist)
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20 September 2011 Firstly thank you very much

As i have said in other house his children are staying in that case too do we need to treat as dlop???

And if we we treat it as dlop than can we take rent amount very lesser??

Kindly reply....

Thanks again.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 September 2011 First ascertain from the assessee in whose name are the houses and the loans.

If both the house & the loans are in the name of the assessee, then they will be assessable in his hands.

He can treat only one house as self occupied, notwithstanding the fact that his children are living in one of the houses.

Kindly ascertain the fair rental in the area in which the house is situated. Do this for both the houses.

The house which has lower fair rental value should be treated as deemed to be let out and the other should be treated as self occupied.

It is not compulsory that only the house in which the assessee is actually staying has to be treated as self occupied.

Even the house in which his children are staying can be treated as self occupied.

Choose the option which is more beneficial to the assessee.

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