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house property head

kornica jain (Entrepreneur) (38 Points)

24 May 2010

i have got an issue in regard to the HP head

Is it possible for an assessee to show its DLO property as an LOP with 12 months vacancy and then claim deduction in regard to the interest on housing loan without any specified limit ,as in the case of DLO

if its possible then why would anyone show his property to be as an DLO or as an SOP . he will just show the one to be vacant for 12 months in search of suitable tenant.

so please do help me out....

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5 Replies

M. N. JHA (CA) (8316 Points)
Replied 24 May 2010

DLO- Deeme to be letout SOP- self occupied prop. But LOP ????

Balkrishna sharma (Tax and Audit Professional) (35 Points)
Replied 24 May 2010

In the case of DlO property the ceiling of Rs.30,000 or Rs.1,50,000 is not applicable.

Interest can be claimed without any restriction on DLO property.

CA Amit Kanani (Practicing CA) (338 Points)
Replied 27 May 2010

AS PER PROVISION OF H.P, IF ASSESEE IS OWNER OF 2 OR MORE H.P. THEN 1 HP SHALL B TREATED AS HIS SELF OCCUPIED AND OTHER WILL B DLO. SO, HE WILL CHOOSE THAT H.P. AS HIS SELF RESIDENCE WHICH HIGHER GAV AND IN THIS H.P.LIMIT OF INTEREST SHALL APPLY. IN, CASE OF DLO PROPERTY , EXPECTED RENT SHALL B GAV AND NO LIMIT OF INTEREST SHALL APPLY. SO,WHAT U R ASKING FOR, I DONT UNDERSTAND BUT U WILL GET THIS THING.

CA Amit Kanani (Practicing CA) (338 Points)
Replied 27 May 2010

harish sharma (student) (58 Points)
Replied 27 May 2010

ms kornica

it is duty of every assessee to disclose his true income and if somebody wants to concel his particulars of income than instead of showing a sop as dlo (as per ur treatment) he may select non discloser of such property to the department .by doing this the property will not comes into the knowledge of department.

but he should be aware of penalty u/s 271(1)(c)