Hello everyone,
I need your help in the following matter of claiming Housing loan benefit in case of one my colleague.
The background is : He is staying in Mumbai for about 7-8 years on rented premises. He is claiming this house rent. Earlier, he did not have any house property in his name, (It is not rented out at present)
Now, he has purchased one property in New Delhi (Joint name with his parents but first name is his) & Housing loan is taken for the same.
My Question is:
1. Can he claim both the benefit of House rent & also Housing Loan repayment ?
2. Do we have to consider deemed rental income for Delhi Property? (to claim Housing loan deduction)
I understand that since the property taken in his name is not in the city of his work, he should be able to claim both the benefits without paying tax on deemed rent income for delhi property. However, I am not sure of this.
Thanks for your help.
Ashish M Shah
CAclubindia
