House property loss

Tax planning 1157 views 3 replies

Raj Kumar Shaw

Partner

37 Points Posted on 02 January 2012

Dear Colleagues,

My client has two house property. One he uses for self occupation, another house is let out. His employer allows him House property loss for only one house property which is self occupied. For the let out house property loss the employer does not allow to adjust the loss, ultimately the leading to Tax deduction and claim of TDS after filling of return which takes longer time.

What is the rule for declaration to employer, so that his employer can allow him to take House property loss claim for more then one house property.

Regards

R k Shaw

Replies (3)

CA.Praveen Ponnappa

CA PRactice

128 Points Posted on 02 January 2012

As per the annual circualr for deduction of tax on salary issued by CBDT loss from any house property as per the declaration of the employee should be considered by the employer. There is no form for declaration simple statement verified by the employee is enough.

CA Neil Ganatra

Partner - Gautam Joshi & Co.

871 Points Posted on 02 January 2012

Dear Mr. Raj Kumar,

As per the provisions of Section 192 sub section (2B), if the employee has given information regarding loss under the head house property to the employer, then employer has to consider such loss while calculating income chargeable under the head salary for TDS purpose. TDS should be made on the salary income after adjusting loss under the head house property. However, loss under any other head can not be considered.

meabhijit

Project Manager

172 Points Posted on 15 January 2012

Simple declaration is enough for the employer to consider the loss. Check with the employer.. though not needed few employers still insist on form 12C filling to claim such loss.