House property related query

Tax planning 599 views 2 replies

CA Amol Gulavani

M Com ACA

106 Points Joined February 2011

An Assessee is showing his residential house as SOP in current year. He has purchased a new house property alongwith his son in Preceeding prev year. Both father & son have taken loan on new property. The Son is residing at the new House Property, i.e. showing new house as his SOP. Can the Father assessee claim deduction of interest on loan for new property in C.Y. by showing NIL Rent Receipts? If Yes, Kindly suggest Case Laws, if any.. thanks

Replies (2)

Z

Tax Consultation (US and India)

2970 Points Joined September 2011

Yes he can , I will try to find some source for reference

Interest on self occupied is limited to 150k but of let out property is the amount of interest which may exceed 150k. Father should charge some rent from son to get more deduction of interest

CA Vinay parmar

Chartered Accountant

1318 Points Joined January 2012

yes the father can take the benefit on interest on loan, and he has to consider any one of his property as deemed to be let out property, if he consider this new flat property as deemed to be let out property, he will show it in an income from house property in the proportion of his ownership in the new flat and will get standard deduction of 30% from that, in thihs case he will get interest benefit to any extent, but the interest will get divided between him and his in the EMI proportion.