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Property tax

347 views 3 replies

dt

test

24 Points Posted on 22 December 2011

I have two properties A and B. Both are co owned by me and my wife. House A is on rent and rent is received in my wife's name. I stay in House B and also have an outstanding Home loan against House B.

Question- For my income tax computation can i declare House A as self occupied and House B as deemed rented and claim full interest deduction of House B. This will be by showing rent of House A as property income in my wife's return.

Replies (3)

Guest

No, you will have to show one property as vacant while computing income under house property but its upto you , you can show any property vacant........

Z

Tax Consultation (US and India)

2970 Points Posted on 22 December 2011

Since the property was actually let out I doubt it can be done

Sec 23(4)(a)- Only one house is to be assessed as self occupied (except if the other property is also self occupied and is used by assesse and grandparents , will cite the case later ) and in this sec the assesse has the option to use any property as self occupied

Lets see what others say

Nitesh Matta

Nothing

198 Points Posted on 23 December 2011

You can not. If both houses were SOP, one as per your wish will be deemed to be Lop.. Since you actually receiving rent on it that wud be considered Lop.