Income from House property

Computation Will Be Done According to on Which Less Tax Come........

n If U own Two property at a time........IT Says that One Preperty will be let out by u.

Then Kindly Compute of Both Propert as Let Out & Self Occupied,

In Which case u Find Less Ta , U Hav to Consider it Accordingly........

in Self Occupies Max. 24 (b) Interest paid Allowable is 150000/-

& in Let Out No Limit

Hi Anush

Thanks for the reply, my problem however is that since the Bangalore property is partly let out and partly self occupied, according to provisions of the income tax act, it should be considered as let out property for the entire period right?

In the case of mumbai property, can i consider it as deemed to be let out property because there is no self occupied property

Regards

Ravi.K

Mr. Ravi

you are right acc. to the provision WHERE THE HOUSE IS SELF OCCUPIED FOR A PART OF THE YEAR AND LET OUT FOR REMAINING PART OF THE YEAR, THEN INCOME FROM SUCH PROPERTY WILL BE COMPUTED AS IF THE PROPERTY IS LET OUT. Therefore Bangalore property is treated as deemed let out.

as far as Mumbai property is considered to treat it as self occupied assessee has to satisfy any one of the following 2 conditions as per Sec 23(2) :

1) where the property is in the occupation of the owner for the purpose of his own residence Sec 23(2)(a); OR

2) where the property cannot actually be occupied by the owner by the reason of the fact that owing to his employment, business/profession carried on at any other place, he has to reside at that other place in a building not belonging to him.

Therefore, Mumbai property can be treated as self occupied, if assessee is satisfying any 1 of the above conditions.

TAXABLE INCOME :

Mumbai: Loss from House Property: Rs.1,50,000. -If treated as self occupied

Bangalore : Loss from House Property: Rs.2,05,900. -If treated as let out.

And if even Mumbai property is treated as Let out, then the assessee can claim deduction of                         Rs. 6,00,000-Int. on Loan

Loss from House Property : Rs. 3,90,000.

Rectify me if im wrong

Agree with Preethi that Mumbai is self occuppied and Bangalore is let out.

But i am getting a different answer regarding numbers. You have to take GAV for 12 months and not 5 months, since the let out property is not vacant, it is occuppied by assessee

PFAF

ya preeti u r right

thanks Mr. Gk

was having the doubt bt was nt sure thanks for rectifying me...

so now Loss from house property will be : Rs.1,39,750

"23.  ........(2) Where the property consists of a house or part of a house which—

             (a)   is in the occupation of the owner for the purposes of his own residence; or

             (b)   cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him,

the annual value of such house or part of the house shall be taken to be  nil.

(3) The provisions of sub-section (2) shall not apply if—

             (a)   the house or part of the house is actually let during the whole or any part of the previous year; or

             (b)   any other benefit therefrom is derived by the owner." (EMPHASIS SUPPLIED)

Reg Mumbai house: If the problem is in a text book, the conclusion reg the same treating it under Sub-Sec.(2) above is correct. However, it should not be technically called as "Self-occupied". it is a house which was neither used by the assessee nor let out. 

If it is a practical issue, (3)(b) above gains importance. That house can be treated as let out. if the assessee has stored even some unused things there.

I want one clarification here.

I have taken a home loan for purchasing our house.

Now one portion of this house is rented out; while we live in the other portion of the same house.

For claiming Interest deduction under "Loss from house property", can I consider this house as "Rented out"?

Can I claim the actual interest (which is around Rs. 2.5 Lakhs) under this head?

Thanks,

Narendra