Query on house property taxation

205 views 3 replies

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

 

Replies (3)

You cannot choose any house as self-occupied, or deemed let out, because that provision is available only when both houses are self occupied. In your case, you are actually getting rent on one of your house, which is let out.

Thanks for replying.

Oh okay. I saw at least couple of articles which was saying that I can do it. But, I was confused whether I can do it or not. Thanks for letting me know.

I think I will wait for if some one else has different views, just to be doubly sure.

DEAR VISHNU SIR 

YOU CAN DO THIS 

BUT IT IS WRONG ,

YOU CAN DO ,IF THERE IS NO ANY LEGEL DOCUMENTS OF RENT PAID OR RENT RECIEVED ,

APART THIS NO ITR FILE WHO HAS  RENT PAID .

TAKE CARE 

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