Income from house property - shifting to another city

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untotal

24 Points Posted on 29 November 2013

Dear all,

I am a self-employed professional, shifting from Mumbai to Delhi and have a few questions regarding House Property.

I have 2 houses in Mumbai. One is self-owned and other is let-out.

I will be shifting to Delhi and staying on rent.

The current SOP property will be put out on rent.

Now my question is whether I can adjust the rent paid in Delhi to the income from property 1 & property 2.

Many thanks

Replies (4)

Mihir

Wealth Manager

5293 Points Posted on 29 November 2013

Since you are self-employed, the rent received shall be assessed under income from house property. After you shift to Delhi, the rent from both the houses shall be assessed under income from house property, and you may avail 30% deduction. If the purpose of staying in Delhi is related to your business, then rent paid may be deductible expense.

Sivaguru SM

Tax Consultant

235 Points Posted on 29 November 2013

Since your case represents Income from House property, you cannot adjust rent paid to rent received. Only thing is you can avail 30% standard deduction.

Karuna

CA Professional

196 Points Posted on 29 November 2013

Mihir sir is right. You can not adjust rent paid from rent received under the head income from house property. What you can do is you can claim the rent paid as business expense if you have come to delhi for business purpose. However, you will be eligible for 30% deduction under the head income from house property from rent received.