Income from rented property

Dear Reader,

I am Naveen. I got a flat for home loan and since my wife work location is far awar I have rented the flat.

My queried are:

1. Can I claim the complete intereest I am paying since I have rented the property.

2. Can I claim principle tax excemption under 80C?

3. How do I show the rental income and how to calculate the rental income.

Is there any rule, if my office is near the flat (5-6km), I can not claim it as rent out property and if I claim there can be audit issues.

Regards,

Naveen N