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Loss from house property

Tax queries 732 views 1 replies

Solomon

24 Points Posted on 07 January 2015

Hello All,

This is regarding the Loss from House Property in respect of Tax submission for the financial year 2014-15. I stay in bangalore on a rent in an apartment. In addition, I bought an already-constructed old house by Loan from a bank. Since the house is far away from where I am currently staying and in order to not inconvenience my children, I planned to let out the purchased property. I have two queries;

1. How do I claim 'HRA Exemption' as well as 'Loss from House Property' Tax benefit? Both the places are in the same city in Bangalore.

2. Since I had planned to let-out the property, I am still in the process of searching for suitable tenants. Since i haven't found any tenants till now, how do I claim loss from House property (Let out property)?

Please advice and help!

Thanks & Regards

Solomon

Replies (1)

Kavyaa

Budding CA

107 Points Posted on 07 January 2015

1. In case of your own house which is going to be let out, you can claim deduction for payment of interest on housing loan borrowed u/s 24.

But where the assessee has taken a house on rent and also own a house in the same city, claiming HRA exemption u/s 10(13A) is allowed only when there is a genuine reason for not staying in your own house. Eg.for the puposes of employment.

2.Eventhough the house is left vacant, the tax has to be paid on the basis of notional income under the head income from house property. No loss due to vacancy of let out property can be claimed in your case.