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Form16 not considering 2nd home loss?

Tax queries 698 views 1 replies

Naveen

ASC

53 Points Posted on 30 April 2012

Hi i work in private company and in our company they allow only proof of max 1.5 lacs for claiming interest deduction on home loan. Due to avoiding pricedural complications they dont entertain proof for 2nd home deduction if i have taken loan on same and want to claim more loss sinse i paid 10lacs as interest for the 2 nd home this year.

So now the form 16 has 1.5 lacs as adjustment but actual interest paid is 10 lacs , how do i show that in my return, will it not lead to cancellation of refund and raise query sinse form 16 is always considered more sacrosant?

Moreover no attachements are allowed with itr v so how do i show that i am claiming for?...

Pl help

Replies (1)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 30 April 2012

Since you own more than one house, so one house from that considering the I-T benefits will be considered as self-occupied. the co will accept only proof against one house only & not the second one.

In respect of the second one the tax benefit will not be considered by your co while making TDS. you will have to assess your liability while filing the return. In respect of your second house it will be considered as deemed to be let out property, as only one property of your choice will be consdiered as self occupied & the other one as deemed to be let our property. you will have to take the the fair value going on in your area as rent received for your second property. From that you can claim the municipal taxes paid as deduction. On the balacne you will get 30% std deduction as well as the interest paid on your loan. in case the there's a loss from your second home, then you can set-off the same agaisnt your salary income & pay tax only on the balance if requried.