Section 24

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TANVI (Querist)

04 January 2016 If house property is not occupied by the owner because of his employment/business/profession carried out at any other place and he stays in a rented premise in such other place. Can assesse claim deduction of interest payment on housing loan in such case as property is neither self occupied nor let out?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

04 January 2016 1. U/s 23(2) the annual value of such property shall be taken to be NIL -as Self Occupied.
2. Interest payments on housing loan is allowable U/s 24(b) for the AY 2015-16 and onwards.
3. Principal Repayment - Deduction available U/s 80C

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CA Pallav Singhania

CA Pallav Singhania (Expert)

04 January 2016 Well Explained by the Expert,

A self-occupied property means a property owned by the taxpayer which is occupied throughout the year by the owner for the purposes of his own residence and is not actually let out during the whole or any part of the year.
Thus, a property not occupied by the owner for his residence cannot be treated as a self occupied property. However, there is one exception to this rule.
If the following conditions are satisfied, then the property can be treated as self-occupied and the annual value of a property will be “Nil”, even though the property is not occupied by the owner throughout the year for his residence:

a) The taxpayer owns a property;

b) Such property cannot actually be occupied by him owing to his employment, business or profession carried on at any other place andhe has to reside at that other place in a building not owned to him;

c) The property mentioned in (a) above (or part thereof) is not actually let out at any time during the year;

d) No other benefit is derived from such property.

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