07 January 2013
Suppose we purchase a house on loan. We are paying its EMI's on time. Are we supposed to pay tax on such house? It is a self occupied property. If yes then please elaborate the procedure.
08 January 2013
If you are owner of a building, income from such house has to be included in your gross total income. If you use the house for self occupation (only one house) then the income from house property will be nill. However, you can claim deduction of amount of Interest on loan borrowed for the purchase of house under the head house property( subject to max of Rs.1,50,000/-). Principal amount can be claimed under section 80C.
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