Deemed let out HP

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RAVI (Querist)
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14 July 2010 Husband wife (both salaried)joint owned two house (in mumbai), and claimed interest u/s 24 in form 16 with there employer...( 1st house husband & 2nd house wife)

where as one house is letout @9000/ pm for 4 month in PY.

can both individual claim 1 house as selfoccupied ?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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14 July 2010 They should be allowed to claim

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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14 July 2010 As per the Indian culture ,prevailing, if the marriage exists, both wife and husband is supposed to live together in one house. Moreover one house is let out also for a period of time. In view of that, the plea of one house for one spouse each for self occupation will be viewed as a "tax planning for tax avoidance" which,I am afraid, is alarming to the assessees.

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RAVI

RAVI (Querist)
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14 July 2010 dear prakash sir..

can u please eloberate..
reason for your answer..

DR GAURAV GUPTA FCA, FCS, LL.B

DR GAURAV GUPTA FCA, FCS, LL.B (Expert)
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14 July 2010 AS FAR AS I THINK BOTH CAN CLAIM HOUSE PROPERTY AS SELF OCCUPIED AND BOTH CAN GET THE DEDUCTION OF INTEREST INDIVIDUALY

RAVI

RAVI (Querist)
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14 July 2010 please note that 2nd property is letout for 4 months, condition to self occupied HP is NO OTHER BENEFIT should be derived ??

Sunil Kr. Sanganeria

Sunil Kr. Sanganeria (Expert)
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15 July 2010 If a House is owned by both husband and wife, interest u/s 24(b) can be claimed by aperson who repays loan. In you case, loan is repaid by Husband of 1st house and by wife of II house. In that case the claim is right otherwise the ITO will disallow the claim.

Since the house is owned by both, rent received by letting house property should be divided eqally and both has to show rent received as Income from House Property.

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