Query on TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2011 Dear All,

I am salaried employee working at Hyderabad and i have two houses in bangalore, which was bought through housing loan and paying EMI's for two houses. My family is staying at Bangalore in one house.

I am claiming HRA for residing at Hyderabad and also claiming Interest of Rs.1,50,000/- and principal, since my family is staying at Bangalore.

For second house i am getting rent for Rs.6000/- pm and paying interest of Rs.60,000/- and Rs.30,000/- towards principal. Can i declare/show, house property loss for second house to get exemption from salary income?

with best Regards,

CA. Lohith Jagadeesh

CA. Lohith Jagadeesh (Expert)
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22 February 2011 Hi,

Yes you can claim the benefit.
As Sec 10(13A) says amoung other things

"Exemption is not available to an assessee WHO LIVES IN OWN HOUSE OR IN A HOUSE FOR WHICH HE DOES NOT PAY ANY RENT"

you are satisfying both the points , as ur not staying in your own house and w.r.t the second part, you are paying the rent in Hyd.

As far as Set off is concerned

Declare one H/P as SOP & the other as LOP,
and claim intra source set off as per the provisions of Sec 70.

( please read Sec 70 & 71)

Further the provision of Sec 71B says that

"where the net result of compuation for any A.yr under the head Income from H/P is a loss and such loss cannot be or IS NOT WHOLLY SET OFF AGAINST INCOME UNDER OTHER HEADS UNDER SEC 71, SUCH LOSS CAN BE CARRIED FORWARD FOR SET OFF AGAINST INCOME FROM H/P IN THE SUBSEQUENT A.yrs FOR 8 A.yrs"

MEANING

It can be set off against Salary income.

Hope i have resolved your issue.

Thank you,

Regards
CA.Lohith.J
B.Com,ACA,CS,(ICWA),SAPM Hons,ITF Hons