Income tax query
This query is : Resolved
23 April 2012
I reside and work in chennai in a rented property - Rs.10,000 pm, but recently constructed a house in kerala. I pay EMI of Rs.12,000 for the loan that I availed. No body resides in the property in kerala and I just visit it once in a month or so.
In tax computation sheet that my company sent they asked If i own a House property and if yes what is the rental income. Though i own it, I reside else where and also pay rent and have not let out my property. How do i handle this and what is the tax implication?
Please help.. you may also sent the response to kind.kool@gmail.com
In tax computation sheet that my company sent they asked If i own a House property and if yes what is the rental income. Though i own it, I reside else where and also pay rent and have not let out my property. How do i handle this and what is the tax implication?
Please help.. you may also sent the response to kind.kool@gmail.com
CA PARAS BAFNA
(Expert)
23 April 2012
You can claim the property as your self occupied property U/s 23(2)(b) and its net annual value can be taken at NIL.
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24 April 2012
Thanks Paras but in that case will i also be able to claim the HRA deduction as am paying the rent of rs.10,000 per month? Also Can I claim the benefits of the principal and interest that I pay for my home loan?
Your response is much appreciated!
Regards,
Vimal
Your response is much appreciated!
Regards,
Vimal
CA PARAS BAFNA
(Expert)
24 April 2012
You will be able to claim certain exemption towards rent paid if your company gives you HRA. Entire amount of Rs. 10000/- payable by you towards rent will not be exempt. However it will be based on the least of the 3 criteria-
1. 50% of Salary (Basic +DA in terms)
2. Rent paid i.e. 10000- 10% of Salary
3. HRA received.
.
In any case you have to bear tax liability on at least 10% of your Salary.
.
You will get Deduction U/s 80C as well as U/s 24 for your owned home.
1. 50% of Salary (Basic +DA in terms)
2. Rent paid i.e. 10000- 10% of Salary
3. HRA received.
.
In any case you have to bear tax liability on at least 10% of your Salary.
.
You will get Deduction U/s 80C as well as U/s 24 for your owned home.
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