- I currently stay in a house which belongs to my grandfather (along with his two brothers). No mutation/sale/partition of the property has been done yet as there are many heirs and settlement will take a lot of time. However, currently I and my mother are the only people staying here. Can I claim rental deduction for this property by showing that I pay rent to my mother on a monthly basis? Is that allowed?
- I now plan to purchase another property in the same city as the house as referred to in point #1 above. I also work in the same city where these two properties are located. I plan to go in for a home loan for purchase of the second property but will continue to live in the first property with my mother. Can I claim tax deduction on the home loan on this second property? If yes, what is the limit and are there any other conditions attached. Please note that I do not want to rent this second property out unless mandated by tax regulations.
CAclubindia
