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House property

25 August 2018

I have a house rented to a relative, who is paying me a paltry sum. No receipt is given.
I stay at a rented house 200 km away, claim HRA benefit.
I also claim interest benefit on borrowed capital.
I don't show gross rent received.
Any implications? Please advise.

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7 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 25 August 2018

Yes... You can claim.

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CA P V N Varma (CA ) (609 Points)
Replied 25 August 2018

yes you can claim HRA and you must show House property income while filing Income tax return if it is rented one

1 Like

Swapan Kumar Giri (68 Points)
Replied 25 August 2018

Varma Sir, what if I don't show house property income at all? Or show deflated income?

CA P V N Varma (CA ) (609 Points)
Replied 25 August 2018

then it will be treated as self occupied property no need to show rental income and HRA allowed only when you live in a rented accommodation if your house property not situated within city limits.. so u are surly claims both the benefits without showing rental income

Swapan Kumar Giri (68 Points)
Replied 25 August 2018

Noted. Thanks.

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CA Bhavik Soni (867 Points)
Replied 25 August 2018

at one point you are claiming benefit of HRA and on the other hand you are showing HP as self occupied.

in such case your HP will be treated as let out or deemed let out as the case may be.

show rent income to avoid litigation in future.

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Swapan Kumar Giri (68 Points)
Replied 26 August 2018

CA B Soni sir, Duly noted. I have proof like electric bills to substantiate that the house was lying vacant. Will it still be treated as deemed let out, inviting tax?