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

 

 

 

Replies (3)
1. Yeah u can claim full amount of interest as deduction u/s 24
2. You can also claim deduction u/s 80C for repayment of principal (up to ₹1.5 lacs)
3. Use ITR2 and mention the rental income in the appropriate place
4. There is no such rule that the house purchased should be occupied by you. If it is not occupied by you, it shall be treated as let out property and income shall be taxed accordingly.
 
For more details about computation of income from house property, refer https://www.incometaxindia.gov.in/Tutorials/Income-from-House-Property-Practical.pdf
 

Thanks for the updates!!

Agree with Poornima...

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