Loss on house property when it is not self-occupied

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Aditya (Querist)
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23 October 2014 Hi,

I have a query regarding the tax exemption on Housing Loan Interest. Consider a scenario where I have an own house in Hyderabad, for which I am paying Interest of around Rs. 360000/- per annum. Now, if I am staying in Bangalore and taking a rented house, I assume I will be entitled to Tax exemption on HRA. However, the house in Hyderabad is not let out, because my parents are staying there. Now, will I be entitled to claim exemption of entire Interest amount, or only Rs. 200000/-? If it is only Rs. 200000/-, then under which section will it need to be claimed, because it is not self-occupied. And for let out property, entire amount excluding the rent is exempted, in this case the rent being Rs. 0/- as it is occupied by my parents.

Please advise me as to what should be the proper course of action as per the law in this case.

Thanks & Regards,
Aditya

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 October 2014 just simply show rent from parents at a reasonable value can claim full deduction for interest against this rent.

Aditya

Aditya (Querist)
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24 October 2014 Thanks Nikhil. In that case, so I should be declaring the rent under my income as well, correct?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 October 2014 absolutely...............

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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16 December 2014 yes correct thinking.............

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