Hi,
I have two houses.
1) Hyderabad - Rented - Actual Rent of 8,300
2) Bangalore - Self Occupied - As per market value, expect Rent of 15,000
As per income tax site and few personal finance articles, I understand I have an option to select which house as self occupied and which house as let-out based on which is more tax efficient for the assessee.
With that, can I choose my Hyderabad house as Self Occupied and choose Bangalore house as Let-out. Is it legally correct to do? I understand that I have to pay tax on expected rent of 15,000 (minus 30% standard deductions)
The reason why I ask is, the first house, the housing loan is already paid. On the second house, the annual interest crosses 5.5 Lacs. So, I want to utilize the complete interest amount for tax benefits instead of only 4 lacs (2 lacs each for me and my wife).
Reference:https://www.incometaxindia.gov.in/tutorials/income-from-house-property-practical.pdf
CAclubindia
