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Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2011 Sir

1 of our company employee earning Rs.250000 p.a. and he is claiming HRA.
He has one more property in Andra. He has paid Housing Loan interest of Rs.5,00,000/- to that andhra house.

can we report this H/L interst in Form 16 under "Any income reported by employye".
if we consider this, then the form 16 wil show negative amount.

pls suggest

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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03 August 2011 I think, the query is signalling that things are not wrong in Karnataka only., there is something wrong in Andhra also.
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Is it possible for an employee who earns Rs. 250000/ to pay interest only to the tune of Rs. 500000/- ? Forget principal and cost of the property.
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(A perfect example of -Amdani Athanni and kharcha Rupiah. )

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From where the extra money has been generated by him ? is questionable and shall be questioned.

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If he is an overall right person then he must be doing something wrong in the company?

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It's possible that he is not declaring his rental income or any other income in respect of that property or otherwise.
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It is advisable that you should not accept
his claim of payment of interest unless he does not show the sources of repayment of loan as well as interest in his declaration filed with the employer.
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This is advised in the interest of all.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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03 August 2011 Very good view by Mr.Paras Bafna
also salary income and form 16 cannot be negative

Querist : Anonymous

Querist : Anonymous (Querist)

04 August 2011 Sir

his father has sold 1 property and paid Rs.1500000 as gift. he has cleared the Housing loan with that amount. the gift received from his father not taxable ad hence no need to declare in form 16.

so nw pls suggest whether can we show the H/L interest in form 16, which effect Gross Total Income as negative, though the salary incoem is positive.

so pls suggest

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 August 2011 At any cost self occupied Housing interest can be claimed maximum of Rs.1.50 lakhs or actual which ever is less. but subject to the salary income only. you cannot set off the self occupied house property loss more then salary income and cannot show negative

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