House property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 August 2012 what is the criteria for considering a house as self occupied when the assessee is owning more than one house,give example and also explain interest concept for both let out and self occupied.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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10 August 2012 Where the assessee owns more than two houses, he should follow the following steps.

1. Consider house 1 as self occupied and house 2 as deemed to be let out.

Compute total income.

2. Consider house 1 as deemed to be let out and house 2 as self occupied.

Compute total income.

3. The alternative that provides more benefit to the assessee should be selected.

Allowability of interest:

Self occupied - Rs. 1,50,000
Let out - no limit

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