Income from house property

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This query is : Resolved

mangesh dhumal (Querist)

14 October 2011 My friend had purchased three properties viz. a for Rs.2.10 lacs in 1996, b for Rs.5 lacs in 2002 and c for Rs.16 lacs in feb'2010 which is under construction. At present he is residing in b and let out the property namely a for a rent of Rs.4000 p.m. There is no loan outstanding against property viz. a & b. However he has availed housing loan of Rs.13 lacs for property c which is currentlt under construction.Since there is no moratorium period for housing loan his emi for Rs.13 lacs started from apr,11 for rs.11,000/- even though the loan is disbursed for Rs.50000/- only and Rs.1 lac is debited to his loan account towards loan protection insurance, hence at present the loan is outstanding for Rs.1.10 lacs. Can he adjust the outgoing towards loan amt under the head income from house property for the F.Y.2011-12 ? The possession of property C is expected in 2014 and he will be moving in property c to reside and let out property b alongwith property a. In this scenario can he show property b as self occupied and proposed income from property b as income from c and square up the proposed hsg loan int agst the propsed rental income from a & b under income from house property ?

Jinesh Bansal

Jinesh Bansal (Expert)

14 October 2011 In case of flat under construction , he has to capitalised interesst paid on HL during the construction period.

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