Hi, I have taken a home-loan for a house in Chennnai and I am employed in Bangalore. Now, I get a deduction of 1.5L on my taxable income. If i declare that i have "Let out" this one to my parents for a nominal rent, can i get more deduction? ~ Vinodh
RE:Let out Premises
by Amitabh on Jun 02, 2007 03:38 PM Permalink
In a way you are right.if house is on rent,deduction of interest is allowed without any limit.
RE:RE:Let out Premises
by M Anand on Jun 02, 2007 06:24 PM Permalink
Hi Amitabh The deduction of interest is allowed with out any limit for let out property. But that should be claimed only on filing return of income. Your employer cannot give deduction for property which is let out.
RE:Let out Premises
by Amitabh on Jun 02, 2007 08:33 PM Permalink
That is OK.But at least the interest will be allowed,even if you claim it in your return.In case of self occupied property,interest beyond rs 1.50 lacs is not allowed.And,in case even after deduction of interest,your income from house property stays positive,you only will have to pay tax,there is no question of any return fromincome tax department.
RE:Let out Premises
by Vinay Joshi on Jun 02, 2007 12:13 PM Permalink
No need. You are eligible for a deduction of Rs. 1.5 lakhs and live on rent in Bangalore. You are eligible for HRA as well as deduction on that, becuase its impossible for you to stay in Chennai and work in Bangalore.
