Tax on two self occupied home loan

For the purpose of computing tax deduction on home loan, if the assessee has 2 house properties, it is at the discretion of the assessee to choose any 1 property as self occupied and 1 property as deemed let out....

The Assessee can show any property as let out and any property as self occupied... for self occupied property - the deduction allowed is max Rs. 1,50,000 and for let out property there is no max limit...

Thanks Neha for reply.

Can I declare my Bangalore house as let out property and say that it is rented to my wife? If I am asked further details by Income Tax authority would they accept a rental agreement between me and my wife as proof?

Thanks,

Ashish

Yes...you can collect rent from your wife.....

your wife is a house wife, so she has no income to pay the rent. Therefore, first create the regular income in your wife's name and then collect the rent from your wife.

Dear all

 I think  how can given a husband rent own property to own wife. & rent received. one property has self occupied then live both.  please  advice.

There is no need of giving that Bangalore House Property on Rent. Since the assessee owns two house properties for his own residence, as per the provisions of the Act, he can select any one of those two as self occupied and the other house property will be treated as Deemed to be Let Out Property. In case of Deemed to be let out Property, income from House Property is required to be Computed as if it is given on Rent.

Kishor is right. There is no need to receive rent to show it let out. Deemed Rent will be taken as per the circle rate.

u can take the deduction of entire Interest amount on that property and limitation of Rs. 1.50 lac will nt b applicable on dat property.

Kishore is right. In case of deemed letout no need to collect rent. As per provision, GAV will be calculated

Thanks everyone for your valuable input