Dear Sir,
I have purchased a flat in Bangalore but I got transfered to Delhi before completion. I registered my flat in July 2013 and paying 1.8 lakhs as interest on home loan annually. Now, If I give my flat on lease then how tax will be calculated. Which can save more tax monthly rent or Lease. My annual income is around 6 lakhs. Please suggest as early.
D Kumar
There is a vital differece between licence (rental) and lease. You may give your flat on rent by a instrument of leave and licence agreement which is usually for 11 months. You will receive monthly rent and a one-time security deposit. After a period of 11 months, you may choose to renew the agreement or terminate it. The interest paid to housing loan shall be deductible in the income from house property.
So my suggestion is to go for leave and licence agreement, and avoid lease agreement.
CAclubindia
