11 January 2014
A person is paying interest on loan against property . He wants to know is their any rebate for this under Income tax act. He has salary income , rent from house property and Pension. I also want to how to prepare his Income tax file with this income for the first time.
11 January 2014
You have not stated why and what for the loan was taken. From the nature of income if he has taken this loan against property to purchase property then the loan interest can be deducted from gross rent received by him. If not then against salary or pention he cannot adjust the interest.
To prepare his return and file you have to collect all data since joining of service till date and the amount of interest on deposits and bank account or salary earned by him then you have to collect other information about houe property loans given, LIP paid or PF paid and accordingly you have to prepare his or her Blance sheet and then if it is taxable income then you have to prepare the computation and file the return accordingly.
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