tds on salary income

Save Share

This query is : Resolved

sreenivas (Querist)

21 July 2009 hi,
Actually i have two houses in hyd and both are self occupied.i have two house loans on these properties which is more than 300000/-Interest.can i claim more tan 150000/- asloss from house property in form 16.

Abhishek Mohta

Abhishek Mohta (Expert)

21 July 2009 Out of the two houses you can claim only one as self occupied. The other will be treated as deemed to be let out property.

Fo one house you can claim a loss of Rs. 1,50,000/- on account of House loan. But for other you have to compute the Annual Value wherefrom you can claim deductions U/s 24.
For the computation purpose you have to find out what is the municipal value of the property and the fair rent for the same if it was actually let out for both the properties. Also get the Standard Rent from the Rent Control Act.

Now, compare the Municipal Value with fair rent subject to the maximum of standard rent. Say Standard Rent is the value for this step.

As the property was not let out the actual rent will be nil.

So the Annual Value will be your Standard rent. Now if you have paid any municipal value for the property you can claim that against the annual value. This will give you the Net Annual value (NAV).

Claim the house with higher NAV as self occupied to save tax and against that you can claim a loss of Rs. 1,50,000/-.

For the other house from NAV you can claim deductions U/s 24
i. 30% of the NAV
ii. Interest on HOusing loan maximum of Rs. 30,000/-.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now