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Income from house property - shifting to another city

Tax queries 7552 views 4 replies

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)

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.

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.

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.
For the rent paid by you a claim for deduction under sec.80GG can be availed (you can use this option if the rent is not for business purpose)


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