Sir, Me and my wife have bought a house in Bangalore with 1.2 cr and both of us have taken loan if RS 50 lakh each.
We were taking benefits of interest payment of RS 2 lakh and principal deduction of 1.5 lakh each .
Now I have been transferred to other city and I have taken a house on rent at RS 30000 there in which 17000 is reimbursed by my institution.
Meanwhile I have let out my property in Bangalore at 40000 per month.
Now can you please let me know the tax implications of this.and rent income can be taken as 20000 each in my name and my wife's name.
Regards
Rajeev Sinha
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tax on let out property
Replies (4)
The house property at Bangalore will be treated as Let out property, and the home loan benefit will be continued with full interest deduction to both of you, but with rent income included.
While the rent paid at your new location can be considered under HRA benefit.
right now I am claiming 2 lakh under interest but paying almost 3.5 lakh each . so whether I w I'll be able to claim full 3.5 lakh or 2 lakh only.
1. Firstly, rental income will be added to it i.e 2.40 L each..... with 30% standard deduction taxable part u/h IFHP will be 1.58 L each
2. So total loss u/h IFHP will be 3.50 L- 1.58 L = 1.92 L. which is fully adjustable with other income, be it salary.
3. Had it exceeded 2 lakhs, the loss above 2 lakhs is allowed to be carried forward for next 8 years for.adjustment against IFHP.
Well. there is small error in calculation.
Taxable part of rent is 1.68 L and not 1.58 L.
So, Net loss u/h HP will be (3.50-1.68) = 1.82 L, totally deductible against other income.
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