Second house - occupied by parents - nil rent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 June 2013 I have one house in Pune where my mother is staying currently and one more house in Bangalore which is occupied by me as I am working in Bangalore. I have considered Bangalore house as self-occupied and claimed interest expense up to Rs 150000 and considered Pune Property as deemed let out property. I don’t have any Interest against pune property but have to considered deemed rent. My query is whether I can claim rent as Nil against this Pune property as mother is actually staying there. Please advise.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 June 2013 Yes. you have the option for claim the pune house as Nil Net annual value

As per sec.23 of income tax act. incase a house property is not occupied by the assessee due to employment or business purpose, such property annual value can be considered as Nil

CA. RAGHAV GARG

CA. RAGHAV GARG (Expert)
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25 June 2013 No you cannot claim the value of property as nil,

you cannot claim benefit u/s23 because Although you have not occupied the property of Pune due to employement but you have your own house at Banglore,

you are suggested to gift the house at pune to your mother's name to avoid tax implications.

CA. Raghav Garg

Querist : Anonymous

Querist : Anonymous (Querist)

26 June 2013 How I can gift that ? What is legal procedure for it . Please advice?

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