A has 4 houses - 3 in Coimbatore and 1 in Bangalore. Out of the 3 houses in Coimbatore, one is occupied by A's parents and other two are let out. A lives in Bangalore. A has claimed the house that parents live in as "Self-occupied". A has taken loan for purchasing the house in Bangalore. If the house in Bangalore is claimed as "Deemed let-out" the interest paid on the housing loan exceeds the notional rent value. This allows A to offset the taxes on the rents received from other house properties, thus reducing the overall tax liability.
Now, as per the latest rules, two houses can be claimed as "Self occupied", but is it required that the houses be claimed as "Self occupied"? Can A claim the house in Bangalore as "Deemed let-out" instead of self-occupied?
CAclubindia
