Income/loss from house propert

Tax planning 251 views 3 replies

Shamina lakhani

3 Points Joined December 2018

Hi I am bit confused on Income/loss from hous property

I have 2 Properties Jointly with my Mother. I was claiming 100% rebate on interest as follows:

Until 2016-17, my tax calculations were as follows

1. I claimed HRA exemption as I stayed in rental property -as I was staying in the different city than where I have my property

2. Self-Occupied on Property 1 -My mom stayed here. -I use to adjust interest upto 2,00,000 this property

3. Letout - Income/Loss on Poperty 2 -I use to offset interest on this property against rental

From 2017-18, as per new rule, maximum offset for item 3 is only 2,00,000 including for self occupied. So all my losses are getting carried forward for subsequent years.

My confusion is:

Should I continue ot accumulate losses so that at some point if/when I sell the property, I can offset income from sale proceedings against these losses

Should I start filing return on my moms showing rental income in her name and adjusting against interest.

Replies (3)

CA Urvi Gandhi

347 Points Joined August 2012

Dear Shamina,

Even if you sell in future, maximum loss you can adjust would be limited to Rs. 2 lacs.

Since property is jointly owned, you should claim 50% and 50% should be claimed by your Mom. Hence, i would advise you to show 50% income in your return and 50% in your Mom's return.