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Income from let out house property AND rent paid on another

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swati

chartered accountant

21 Points Posted on 05 July 2023

If in the same city owned house property is let out and another property is rented for occupation. This arrangement being done as the owned property is too small and not convenient.

Does the income earned from letting out to be shown as 'Income from House Property' or will it be considered as deemed to be self occupied.

Also will rent paid qualify for deduction under Sec 80GG

Replies (2)

Quick Summary

This discussion explores the tax implications of owning a let-out property while renting another for personal use. It clarifies that income from the let-out property is generally taxable under 'Income from House Property'. The query also addresses potential deductions for rent paid, noting that specific provisions for this scenario might be limited under current tax laws, suggesting exploration of alternative deduction options.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121534 Points Posted on 05 July 2023

Sorry to say there is no provision for such exemption in IT act, 1961. Haven't come across any case law in favor of assessee. So, rent received will be taxable under head IFHP.

Check any another option to claim rent paid deduction.