tds on salary

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This query is : Resolved

veena (Querist)

27 February 2008 an employee is furnishing loss from house property as per form 12C as follows:

Rental Income 120000
Less: interest on borrowed capital 300000
Loss from house property 180000

He is having two properties: one he is residing in ie Self occupied property and another for which he receives rental income.
Now my query is whether employer can entertain the loss of Rs.180000/- while computing the tds on salary or not?
Kindly revert at the earliest as this is urgent.

Thnaks & Regards
Veena

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

27 February 2008 FIRSTLY INTEREST ON BORROWED CAPITAL IS MAXIMUM ALLOWED UPTO RS.150000/- IN CASE OF SELF OCCUPIED PROPERTY AND AFTER CONSIDERING THAT IF THERE IS LOSS FROM HOUSE PROPERTY THAN FOR DEDUCTING TDS EMPLOYER IS REQUIRED TO CONSIDER THE LOSS

R.V.RAO

R.V.RAO (Expert)

27 February 2008 ON BEING SATISFIED THAT THE EMPLOYEE 'S NAME IS REGISTERED AS OWNER OF PROPERTY AND THE LOAN STANDS IN THE NAME OF THE EMPLOYEE, EMPLOYER CAN ENTERTAIN THE LOSS FROM HOUSE PROPERTY. THE EMPLOYER HAS TO BE GIVEN A COPY OF INTEREST CERTIFICATE GIVEN BY THE HOME LOAN LENDER.
FROM THE GROSS ANNUAL RENTAL INCOME , YOU NEED TO DEDUCT PROPERTY TAX(PRODUCE RECEIPT OF PROPERTY TAX) AND ON THE BALANCE 30% IS ALLOWED AS REPAIRS.IF THIS IS X AMOUNT
X AMOUNT MINUS INTEREST ON HOME LOAN . THIS IS THE AMOUNT ALLOWED AS LOSS FROM HOUSE PROPERTY LET OUT.
FOR SELF OCCUPIED PROPERTY, NIL ANNUAL VALUE CAN BE CLAIMED.
R.V.RAO

R.V.RAO

R.V.RAO (Expert)

27 February 2008 UNDER SEC 24, FOR SELF OCCUPIED PROPERTY , THE MAXIMUM INTEREST ON BORROWALS ALLOWED AS DEDUCTION IS RS ONE LAKH AND FIFTY THOUSAND P.A.
FOR LETOUT PROPERTY, THERE IS NO CEILING ON INTEREST ALLOWED AS DEDUCTION.
R.V.RAO

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)

27 February 2008 LOSS FROM HOUSE PROPERTY CAN BE ADJUSTED AGAINST SALARY AND EMPLOYER IS REQUIRED TO CONSIDER THAT LOSS BEFORE DEDUCTING TDS

Ca. Alok Gupta

Ca. Alok Gupta (Expert)

28 February 2008 Loss from house property can be adjusted from salary income.

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