Tax on property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 September 2014 I have inherited a property after my fathers demise along with my siblings which is given on rent.
I now plan to buy a property in my name from my funds.Kindly advise whether the property that i buy will be treated as my second property from income tax point of view.I belong to the high tax bracket while my siblings do not fall in the tax bracket.how can i plan my taxation efficiently to minimise my tax liability.

Thanks in advance

CA Kedar Sakhardande

CA Kedar Sakhardande

(Expert)
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22 September 2014 The inherited property is given on rent as mentioned by you.

So the property which you are going to acquire will be treated as your self occupied property so no deemed rent is applicable.

If you buy this property on bank loan you can claim interest on this property upto ceiling of Rs. 2.00 lacs (If your actual interest is more than Rs. 2.00 lacs then alternative plans are required)