Help wrt income tax

1) Benifit of Interest and Principal u/s. 24(b) and Sec. 80C respectively is available in proportion to repayment of loan by co-applicants. In ur case only 1 person (Applicant-1)  is paying the entire loan amount then only he take benifit of such deductions

2) Applicant- 1 will be treated as deemed owner under section 27 of the act, therefore all rent received, capital gain on sale in future, if at all will be clubbed in his hands

3) If the property is letout u can claim entire interest as deduction (No limit of 1.5 lacs)

4) All the poperty purchased above Rs. 30 lacs is reported through AIR to IT dept. so they have all the records.

5) Wealth Tax on 2nd House is applicable. Net Wealth as on the valuation date exceeds 30 lacs then 1% on excess value of 30 lacs

Regards

For income tax purposes:-

Treat one house as self occupied, the other as let out property. In the self-occupied house, take interest on loan which is maximum 1.5 lacs. Do the same vice versa for both the houses and check which calculation gives lesser income tax and consider the same.

In case of wealth tax, one self-occupied house will be exempted. The other has to be treated as an asset subject to certain other exemptions.

Regards

Prateek

Thanks guys..:) Pritam can you put more light: as the property is not actually being let out.. but can tax b planned..as value of house (self occupied) is lower..on whc loan has been taken..cn we show tht as given on rent.. n show othr house as self occupied.. wht cud b the consequences.. as tax on income frm house property wud also b applicable on the vacant house (having higher value..) Thanks & Regards

I think u can give 2nd house on rent for some part of the year. This way ur rent income will be quite lower. Plus u r going to get 30% flat deduction as per section 24 of the IT act. Plus ur municpal tax will also be deducted from such rent income..

 

Regards...