Hi,
I have bought two houses and both of them are let out, while I am staying in a rented apartment myself. I want to know how should I plan for the income tax deduction pertaining to the two houses which are let out. I am earning rent from both of them. I have following questions, please let me know the valid and proper way to declare the houses.
1) Is it necessary that I declare one of the houses as "self occupied" and the other as "let out" ? In other words, must one of the houses be considered "self occupied" ? If yes, I will declare one of them as self occupied, and get income tax deduction upto 2 lakh on the interest part, and for the other which is "let out", I will get unlimited deduction (of course taking the rental income received into consideration). My doubt in this case is, how will I account for rental income received through the house which is declared "self occupied". It looks counter intutive to me, and hence need your advice if this is valid.
OR
2) To reflect the actual scenario, should I declare both of the houses as "let out" ? It looks correct to me, since they both are in fact let-out. I will declare and get the unlimited income tax benefit for both of them by accounting for the rental income received through them.
Please advise me.
Regards,
Sourabh
CAclubindia
