Individuals tax

224 views 9 replies

Harisha

accoutant

34 Points Joined July 2013

Hi,I am Ram, I took a personal loan on 1st april 2019 sum of 10 lakhs from HDFC bank and FLEXI LOAN 11.50 lakhs from Bajaj finserv. I paid loan amounts as below

HDFC persoanl Loan (Total 12 EMI paid)

Interest amount paid:1,00,573/-

Principal amount:1,60,871/-

Bajaj finserv Flexi Loan (Total12 EMI paid)

Interest amount paid:166750/-

Principal paid:NIL

(Above principal amount(total 21.5 lakhs) taken leased houses 2 no's under sub let and earned income sum of Rs 156000(I.e 13000×12) in 1st house and Rs 174000(14500×12) in 2nd house.(total earned 3.30 lakhs.

Since i am a salaried employees, Company has deducted TDS 237095 on Net income of 1384920(after deductions of chapter VI-A) in old pattern.

Please suggest how much balance income tax to be paid now?

Replies (9)

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

What's the rent expense on your 1st and 2nd house respectively. ????

Harisha

accoutant

34 Points Joined July 2013

I am in saparte house and I paying 8000/- per month and already claimed HRA in the company.

Those 2 houses are not belongs to me and just took for lease basis for the purpose of sub let.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

So no rent is paid for the houses taken for subletting ??????

Harisha

accoutant

34 Points Joined July 2013

I am paid lease amount 21.5 lakhs and I received rent from tenets as said in my trail discussion. Now I would like to know is this rental income whether full taxable or can I get any exemption since I paid interest almost near by what I earned rent!

How should I close IT since I am a individual tax payer?

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Balance tax of Rs. 19555 to be paid.

1384920 + 330000 - 267323 = 1447597

Tax payable = 12500 + 100000 + 134279 = 246779
cess payable = 9871

Total payable = 256650
TDS 237095
Final payable 19555

Harisha

accoutant

34 Points Joined July 2013

Dear sir, Can I have the notification for which I can claim exemption interest on personal loan? It would be highly appreciated since I couldn't gather information of this.

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

There is no notification. It is based on normal tax principle. Expenses incurred for generating income are allowed.

Harisha

accoutant

34 Points Joined July 2013

Thank you so much for all clarification.

Under which head to be shown this transaction?

CA Raj Doshi

Practising CA

8944 Points Joined December 2013

Business income should be 1st preference. However,you could choose Income from Other Sources also.

Assumption for trailing tax calculation - The cost of the property taken on lease is equal to or higher than the loan amounts. There is no longer gap between loan taken, property taken on lease and the date on which property in finally sublet.