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House property

samiksha nagar (Student CA Final) (168 Points)

10 April 2014

I have two queries kindly help:

1- If a person is having two house properties (One at Indore & other at Pune). He resides in Indore & Property at Pune is left vacant. Then is that person eligible to claim deduction of principal amount u/s 80C for Pune house? Also can this property be shown under the head partly let out partly vacant or anything else needs to be done as we'll have to show interest deduction in return.

2- If a person has three commercial offices & he gives these properties on lease to his wife & son. Then, in this situation will any such issue of diversion of income will arise? If yes, is there any other way to deal with the situation?

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2 Replies

CS BHAVIN SHETH (MANAGER-Company Secretary) (131 Points)
Replied 10 April 2014

Dear Samiksha,

As per my knowledge, i can give my contribution to 1st query

that yes pune house prinicipal amount can be claimed u/s 80C and interest deduction can be claimed, provided showing property as vacant

regards

BHAVIN SHETH

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Income Tax Wala: (Fin. Expert) (Chartered Accountants) (2015 Points)
Replied 10 April 2014

Dear

1. they can claim principal repayment upto Rs. 100000/- whether it pertains to pune or indore or both.

2. if owner resides in indore (the self occupied house) and pune house will be deemed to let out in that case assessee can claim interest deduction on self occupied house INR 150000/- u/s 24 b and for pune house he can calim unlimited interest as loss u/s 24 b

3.if owner rented out commercial properties to family members than there is no problems subject to that the receiver of rent must shown that rental income in their return of income.