Wealth tax on two residential properties

1. yes you are right no question of wealth tax arises . 

2.No deduction of repairs and maintainace is allowed .

3.Yes deduction of interest can be made from the rental income of first house . Actually its the negative GAV of second house which is deducted from overall head of "income under the head house property ".

Agree with ABHAY

(i) wealth tax due on both these properties - Nil

(ii) 30% deduction from the rental income and deduction from rental income, in addition to the standard 30% deduction - Only 30% standard deduction is allowed

(iii) deduct interest paid for the loan for the second house against rental income for first house = Yes, you can claim interest deduction upto 1,50,000 in respect of the self occupied property. The Gross Annual Value of self occupied property is Nil, after claiming interest deduction this property will show loss to that extent. This loss can be set off against rental income from the other property

Abhay, Roshan - Thank you. Before I bought second house in Feb 2012, I was staying in a rented accomodation and paid rent.

(i) Can this also be deducted against the rental income/income from house property?

(ii) what documents do I need to evidence the rent payments? All payments were made by cheque but There is no signed lease agreement, only email confirmation on terms.

(iii) My father paid the rent for 2 months - can he claim that deduction in his ITR?

1.Payments of rent can not be claimed as deduction form income from house property . 

2. If you have salary income then certainly you can avail some benefits if you are getting house rent allowance that can be exempted etc ..

but payment of rent is treated as allocation of your own income . So no question of deduction arises . \

and for the supporting documentary evidence for rent collected  a bank statement is enough to show it as rent is received through Cheques .