Bungalow with 1 floor self occupied, 2nd floor let out

Tax planning 385 views 2 replies

amar

salaried

23 Points Joined May 2019

Can I get tax benefit on 2lakh rupees interest?

Also can I get remaining 50% interest as tax benifit other floor which I let out?

If yes, then how to show rental income in my year end IT return. Am salaried employees. Am going to get rental on 2nd floor 108000 per year.

Replies (2)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211486 Points Joined July 2016

1. No.

2. Here its one home loan for which single EMI is paid, so you can take single benefit for its deduction. You can calculate it as let out property for calculation of income from HP.

https://www.incometaxindia.gov.in/pages/faqs.aspx it says A house property may consist of two or more independent units, one of which is self-occupied and the remaining are/are used for any other purpose (i.e., let-out or used for own business). Income from such property will be computed in the following manner: a) Part/unit which is occupied by the taxpayer for his residence throughout the year will be treated as an independent property and income from such a part/unit will be computed in the manner as discussed in case of a self-occupied property. b) Part/unit which is let out will be treated as an independent property and income from such a part/unit will be computed in the manner as discussed in case of let out property.