How to calculate income from house property in my case to get maximum tax benefit .
I own two flats. flat no 1 is let out at rent of 5000/- per month. there is no loan on flat no.1.
Flat no. 2 is self occupied. I paid interest of 2,90,000/- in f y 2014-15 on borrowed capital (loan taken on 01-jun-2012) . Rent in locality of flat 2 is 7000/- per month.
my query is can I show flat no 1 as self occupied and flat no 2 as let out. if yes how much interest deduction on borrowed capital is allowed (Rs.2,00,000/- or actual interest paid ie. 2,90,000/- .
But my query is not replied. My query is whether I have option to show flat no 1 (which is actually let out and no loan ) as self occupied and flat no 2 (where I stay and paid interest of Rs.290000/-) as let out to claim rs.290000/- ( not Rs.200000/- ) as deduction for house property for flat no 2.