Income from House property

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This discussion addresses how to account for income and expenses related to a house property to minimise tax. It explains that income from the owned house, which is rented out, will be calculated based on its annual value. Deductions for home loan interest (up to £200,000 p.a.) and principal repayments (under Section 80C) can be claimed. Additionally, if the individual is salaried, rent paid for their current residence may be eligible for HRA exemption.

lokesh ramesh

lokesh ramesh (Querist)
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09 February 2021 My father is owning a house in town but due to my studies we are residing in rental house in city . we are paying housing Loan amount of 22500 per mouth for the own house in town and letting out that for a rent of 5500 pm . here in city we are paying 6500 pm for rental house . suggest me the best way to account this to avoid excess tax .

CA.Pujah

CA.Pujah (Expert)
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09 February 2021 Your father income from house property will be w.r.t. his own house. It being rented property, annual value will have to be calculated. he will get deduction of interest paid on loan from such income (max. 200000 p.a.) and for principal payment of loan, he can claim it under 80C.

Regarding the rent he is paying in the city, if he is salaried, he can claim the same as HRA exemption as per the limits therein.

lokesh ramesh

lokesh ramesh (Querist)
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11 February 2021 Thanks a lot that helps me a lot

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