Self occupied or rented out?

Hi Kartik,

Ans to ur query 1

Ur new house in bangalore will be a self occupied. Further if u give it on rent the rental income will be taxed under the head Income from House Property. And u can get the various ded u/s 24 wrt to normal ded equalent to 30% of Annual Adjusted Value  and Interest on Housing Loan ( if u take a loan to purchase a house property.

Ans to ur query 2

If u are paying rent and working as an employee( DGM) then u can claim this rent paid u/s 10(13) of the Income Tax Act for exemption on a/c of HRA under Salary.

However u can not adjust the rent paid in Mumbai with rent accrual in bangalore as they will have seperate consideration under diff heads of Income ( as I have understood ur querry)

regards

Dinesh Kalra

 your Interest on home loan will be Deductable from Income from House Property as well as you can get HRA benifit in mumbai..! Thanks

80 ccf excess payment consider in 80 c for example... u/s 80c Rs. 90000/- and u/s 80ccf Rs. 40000/-. then total deduction wil be rs. 130000 or rs.110000 ?

MR. KARTIK....U WILL BE GETTING EXEMPTION OF RENT PAID IN MUMBAI U/S 80GG OF INCOME TAX ACT PROVIDED U ARE NOT GETTING BENEFIT OF H.R.A. AND R.F.A. FROM YOUR EMPLOYER

Dear Dipak,

80CCF is having cap of 20,000/- only while 80C is having cap of 100,000. So in your case if you invest 90,000 in 80C and 40,000 in 80CCF then eligible investment would be 110,000/-.

@ Deepak satasiya:

Maximum Ded u/s 80c is rs 100000/-

Maximum deduction u/s 80ccf is rs 20000/-

The deduction under both of the abovesaid sections are mutually exclusive 

Hence in your case ded u/s 80c is rs 90000/-

and u/s 80ccf is rs 20000/-

Regards:

CA. Piyush Goplani