Partial Let out Property

Tax planning 2162 views 8 replies

For a self-occupied property the limit on interest paid that can be accomodated in loss on house property is 150000. For let out property it is not limited to any amount. What is the case of a partially let out property? 

1. Can it be treated as full let out property?

2. Or is there any proportion to be made for the interest paid by dividing it for self occupied and let out. If so on what basis?

 

Thanks

vystem

Replies (8)

IN CASE OF PATIAL LET OUT PROPERTY BOTH LET OUT AND SELF OCCUPIED UNIT WILL BE TREATED SEPERATELY.

AND INTEREST WILL BE ALLOWED PROPORTIONATELY                    

Agree with Future ca

If partially Let out part is a SEPARATE unit then both are to be treated  differently.

otherwise Entire property will be DEEMED to be LET OUT.

Originally posted by : future ca

IN CASE OF PATIAL LET OUT PROPERTY BOTH LET OUT AND SELF OCCUPIED UNIT WILL BE TREATED SEPERATELY.

AND INTEREST WILL BE ALLOWED PROPORTIONATELY                    

On what basis the proportionate is to be.. on the basis of area let out? If a room had been rented in a house and some part will be common to all. How the common area is to be treated?

Originally posted by : Vijayaraghavan R

On what basis the proportionate is to be.. on the basis of area let out? If a room had been rented in a house and some part will be common to all. How the common area is to be treated?

Go with your original property papers ( registration instrument of flat), you will get the idea, what is common area and how its divided.

Originally posted by : U S Sharma




Originally posted by : Vijayaraghavan R






On what basis the proportionate is to be.. on the basis of area let out? If a room had been rented in a house and some part will be common to all. How the common area is to be treated?






Go with your original property papers ( registration instrument of flat), you will get the idea, what is common area and how its divided.

The common area refered here was the common area between the owner and the tenant within the flat/house. The answer looks like refering to the common area that is shared by residents of the aparment that consists of multiple flats. Please confirm.

Thanks

vystem.

agree with future ca

if there are two separate units then it will be treated as different otherwise it will be treated as let-out...


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