Hello All,
I have a home loan on a housing property, which is self occupied & also let out (one floor) at the same time.
For tax calcualtion should i consider self occupied or let out property. With self occupied I get only 150000 where as with let out option I can get the benfit of the full interest amount component of the home loan.
Please advice me the correct option per income tax rules.
Thanks.
FOR TAXATION PURPOSES U NEED TO CALCULATE TAX ON IT AS IF IT WAS LET OUT PROPERTY(DEEMED LET OUT PROPERTY).SO U CAN CLAIM TOTAL INTEREST PAID BY U AS THERE IS NO LIMIT AS REGARDS TO INTEREST FOR LET OUT PROPERTY.
I MAY THOUGHT THAT AS U LOSS BENIFIT OF SELF OCCUPIED PROPERTY U WILL BE GIVEN TOTAL INTEREST PAID AS DEDUCTION
You have to make two calculations : one for house property Ground floor (SELF OCCUPIED) and other for Let out (First Floor) and have to divide the ineterst.
GF
Income NIL
Deduction 150,000
FF
Income Rent
Deduction actual interest paid less 150,000
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