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Inherited Property tax treatment

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Rakesh

Manager

75 Points Posted on 19 January 2023

Dear Members,

I have a house on my name and paying a loan and taking tax exemption on interest of loan.

After death of my father, i am receiving rent on my name from my father family property (commercial property) which i am showing in ITR-2 as my house property and showing the rent as my income. The property is still in my family name (Father and 3 brother)

Now i have a situation where I am buying new property (plot) after sell of my father residential home (TDS deducted by buyer). Will this property be treated as third property and I will not be able to claim any tax exemption if I take loan?

Replies (2)

Quick Summary

This discussion explores the tax implications of inheriting and managing family property. The user is receiving rent from a commercial property inherited from their father and is concerned about how selling the family's residential home and purchasing a new plot will affect their ability to claim tax exemptions on future home loans. Specifically, they want to know if the new plot will be considered a third property and if this will disqualify them from tax benefits.