House property

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 December 2012 Question : Mr Ram Sharma is a insurance agent and he has one self occupied house in delhi. he has purchased a new house for the purpose of investment (will be given on rant of Rs 6000 Per month from 1/10/2011) at a cost of Rs 65,00,000. Date on which dealing is started 1/4/2011. Date of Registry 01/10/2011. he has taken loan from HDFC Bank of RS 25,00,000 @ rate of interest 10 P.A. on 1/7/2011and from Mrs Sarika (wife of Mr Ram) of Rs 20,00,000 @ rate of interest 18 percent per annum on 1/11/2011. Munciple tax Paid 12500 P.A.Mrs Sarika has only agiculture income of Rs 100000 per annum.

Mr Ram wants to know from you,

1) What is his gross taxable income from the head "income from house property" for the previous year 2011-12. ?

2) whether he will get dedction of interest on both loans? Yes or No ? Explain reason?

3) What documents will be required to take deduction under Section 24 B of the income tax act, 1961 ?

4) whether for deduction under section 24 B he has to make agreement of loan on the stamp paper ?

5) what will be your decision if Mrs. sarika charges interet on the loan @ 18% FLAT rate of interest ?