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Query related

Surabh Goyal (Software Engg) (42 Points)

28 May 2013

On Internet I have read below article :-

“The Rs 1.5 lakh limit on the interest amount is applicable when you’ve taken a loan for a self-occupied house. If it’s not a self-occupied house (rented out) you will get a tax deduction according to the actual interest amount you’ve paid towards the loan. Here there is not limit of Rs 1.5 lakh,”

Recently ,I have brought a house in & I have Pay around 3.6 Lakhs as EMI ( 3 Lakh for Interest & 60,0000 for Principle) Its ready to move. And my HRA 25,000 per month . I want maximum tax benefit. What Will i do?

My working city & house which I brought recently in different city.

Please suggest on it.

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3 Replies

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 28 May 2013

tehre's no bar in claiming simultaneously the exemption towards Rent paid u/s 10(13A) as well as the intrset paid on home loan in your taxable income. the only thing is that you shud have incurred the expenditure towards rent as per the requriement of section 10(13A).

Moreover as your property will be let-out so you can claim the entire interest paid actually during the F.Y.

However if you have paid any interest before getting the possession of the house then you can claim teh interest till the F.Y. preceeding the F.Y. when you got the possession of the property in 5 equal installments from the A.Y. relevant to A.Y. in whihc you got possession of the property.

So in your assessement you can claim the exmeption towards HRA u/s 10(13A) towards Rent paid and the interest paid towards home loan. The incoem from house property will be calcualted as follows:

Rent Received	xxxxxx
Less:Municipal Taxes Paid	xxxx
Net Annual Value	xxxxxx
Less:
STd Ded @ 30% of NAV	xxxx
Interset paid on Home Loan	xxxx
Income/Loss from house property	xxxxxx

Loss if any from the above will be deducted from taxable income. So in this way you can save your taxes on account of loss incurred.

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Surabh Goyal (Software Engg) (42 Points)
Replied 28 May 2013

If I have received 30,000 rent then I get rebate of 2,71,000

Rent Received 30,000
Less:Municipal Taxes Paid
Net Annual Value
Less: STd Ded @ 30% of NAV 9,000
Interset paid on Home Loan 3,00,000
Income/Loss from house property -2,71,000

Rent Received 30,000
Less:Municipal Taxes Paid xxxx
Net Annual Value xxxxxx
Less: STd Ded @ 30% of NAV 9,000
Interset paid on Home Loan 3,00,000
Income/Loss from house property -2,71,000
Rent Received xxxxxx Less:Municipal Taxes Paid xxxx Net Annual Value xxxxxx Less: STd Ded @ 30% of NAV xxxx Interset paid on Home Loan xxxx Income/Loss from house property xxxxxx

Read more at: /forum/query-related-250784.asp

Rent Received xxxxxx Less:Municipal Taxes Paid xxxx Net Annual Value xxxxxx Less: STd Ded @ 30% of NAV xxxx Interset paid on Home Loan xxxx Income/Loss from house property xxxxxx

Read more at: /forum/query-related-250784.asp

Giridhar S Karandikar (Team Lead) (7553 Points)
Replied 28 May 2013

For how many months have you let -out your property. also you have not shown the Municipal Taxes paid amount in you calculation above. the loss comes to 279000 as per the figures given above.