20 January 2011
i have two houses both are not let out. I am statying in mumbai flat and pune flat is empty. But i want to show mumbai flat as deemed to be let out and pune flat as self occupied. is it possible? In mumbai flat i will get full deduction of interest taken on loan and on pune flat it will be subject to limit of 1,50,000/-. also tell me the treatment of HRA. Till date i was staying in rented flat so i was claiming deduction of HRA.
20 January 2011
Yes, whatever house you want that house you can show as deemed to be let out provided if that house is not actually let-out.
About HRA, you can claim HRA deduction as well as becuase nowhere u/s 10(13)A, shown that HRA exemption cannot be claimed while you are living in Rented house and your own house is vaccant.
CAclubindia
