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Home Loan Interest + Rental Income Treatment

Ashish (Professional) (117 Points)

29 April 2009

I am giving Rs 175000 as interest on the Home Loan and earning Rs 1 Lac as rental income.

Please tell me how will be the tax treatment?

Will i receive a 1.50 lac home loan interest benefit?

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16 Replies

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 29 April 2009

HELLO

IF SELF OCCUPIED THE ITS 1.5LAK, IF ITS LETOUT THEN FULL EXEMPT MEANTS WHAT U PAID IT WILL BE TAKEN FULL AMOUNT FOR EXEMPT..YOU PAID 1.75 LAK THEN ITS FULL EXEMPT..BUT YOU HAVE TO SHOW RENTAL INCOME UNDER INCOME FROM HOUSE PROPERTY....

SHOW 1LAK IN THAT

REDUCE 30% OF REPAIRS

BALANCE IS RENTAL INCOME

ANYTHING MORE ASK ME

REGARDS

BALU

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BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 29 April 2009

ONLY THAT MUCH YOUR INCOME, OR ANY OTHER INCOME IS THERE

Ashish (Professional) (117 Points)
Replied 29 April 2009

I am living on my mother house and another house which is on my name rented out for 1 lac per annum.

Giving 1.75 lac as interest for home loan.

So, according to you Balu I can deduct Rs 1.75 lakh from my total income i.e 9 lakh and add rental income approx 70,000 after deducting repairs?

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 29 April 2009

THATS RT, AND YOUR PRINCIPLE AMOUNT IT CAN COME UPTO 1LAK...THAT U CAN CLAIM UNDER 80C.. SO 9.70LAK TOTAL INCOME...

OTHER INCOME 9LAK

RENTAL INCOME 70

SO TOTAL 9.70LAK

DEDUCT 1.75LAK

BALANCE 7.95

DEDUCT

US 80C 1LAK

TAXABLE INCOME 6.95

HAVE TO CALCULATE TAX ON THAT..YOU DONT HAVE TDS

BALASUBRAMANYA B N (CCI STUDENT....) (44679 Points)
Replied 29 April 2009

LET ME KNOW HOW MUCH U PAID PRINCPLE IF 1LAK K, OTHER WISE IF U DONE ANY INVESTMENT HOW MUCH IT IS....THEN IF YOU HAVE MEDICAL INSURANCE THEN THAT YOU CLAIM UNDER 80D....

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Ashish (Professional) (117 Points)
Replied 30 April 2009

That means giving house for rental income is not a good idea because my interest amount is not so high which gives any benefit in tax calculation.

Hemant Jayantilal Manek (Sr. Exe. Accounts) (26 Points)
Replied 30 April 2009

Originally posted by :Ashish
"	I am having Two Flats on my Name & I am paying Housing Loan Interest & Principle amount on both the flats. , On one flat I am Receiving Rent for Rs 108000/- pa & on same flat I am paying Interest Rs 36000/- & Principle Rs .35000/- & other flat I am using for my own purpose, here my Investment u/s 80C is less than Rs 1 lac, so my Q is Can I Claim the Interest & Principle amount on both Flat ?	"

manmeet (manager-finance) (32 Points)
Replied 30 April 2009

Originally posted by :Hemant Jayantilal Manek
"	Hemant, you can avail respective deductiond u/s 24(b) & 80 C subject to maximum limits conained in the respective sections on both the houses. One of the house will be treated as self-occupied and the other one as let-out property. Originally posted by :Ashish " I am having Two Flats on my Name & I am paying Housing Loan Interest & Principle amount on both the flats. , On one flat I am Receiving Rent for Rs 108000/- pa & on same flat I am paying Interest Rs 36000/- & Principle Rs .35000/- & other flat I am using for my own purpose, here my Investment u/s 80C is less than Rs 1 lac, so my Q is Can I Claim the Interest & Principle amount on both Flat ? "	"

M.M.SURANA (Director -Taxation ) (532 Points)
Replied 02 May 2009

Mr. Hemant

Mr. Manmeet is right. Interest payment U can claim u/s 24(b) fro HP Income and for self occupied repayment of loan , U can cliam u/s 80C as per limit prexcribed.

surana Chennai

9952967237

Sridhar (Architect) (22 Points)
Replied 09 December 2009

I have taken a home loan and paying close to 3L as interest. There are two portions in the house and I am staying in one portion and I have let out another portion. Now, should I claim this as rental property or self occupied property? Will I get 3L exemption or will I get 1.5L exemption?

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Amit Jain (Senior Manager) (22 Points)
Replied 13 February 2010

I am staying in a rented house in Delhi west, and I have purchased a new flat in Delhi east on Home loan. Can we claim both HRA and Interest on home loan as deduction from salary income?

CA Saurabh Shukla (Accounts Executive) (223 Points)
Replied 13 February 2010

Yes, Mr. Amit Jain u will get benefit of both i.e HRA and Int. on Loan.

CA Saurabh Shukla (Accounts Executive) (223 Points)
Replied 13 February 2010

Mr. Sridhar treat your two portion as two seprate building and claim interest dedution.

Amit Jain (Senior Manager) (22 Points)
Replied 13 February 2010

Thanks Saurabh. Would appreciate if you could explain futrher with relevant details on both HRA and Home loan - per my understanding if you are staying in a rented accomodationa and owning a house in the same city, you cannot claim both - please elaborate.