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house property

PRITI (STUDENT) (114 Points)

29 August 2018

I own a house property which is vacant and in the same city I live in rented house. So while filing return that house property will be let out, deemed let out or self occupied? as I am also claiming hra. can I also claim deduction on interest on loan paid u/s 24 ?

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Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 29 August 2018

Originally posted by : PRITI
	I own a house property which is vacant and in the same city I live in rented house. So while filing return that house property will be let out, deemed let out or self occupied? as I am also claiming hra. can I also claim deduction on interest on loan paid u/s 24 ?

That house property will be DLOP

You can claim both 24(b) and HRA

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PRITI (STUDENT) (114 Points)
Replied 29 August 2018

So when I take it as dlop, it's asking for annual letable value or rent received or recievable. But as it is vacant I do no receive any rent. So what shall I do?

Ruchika Somani (Coaching and Practice in Tax Audit Law.) (4429 Points)
Replied 29 August 2018

Originally posted by : PRITI
	So when I take it as dlop, it's asking for annual letable value or rent received or recievable. But as it is vacant I do no receive any rent. So what shall I do?

Let rent received be nil

PRITI (STUDENT) (114 Points)
Replied 29 August 2018

it is not accepting. only if I take as self occupied its ok. will there be any problem if I take it as self occupied?

Sarath Chandra (CA Final Student) (566 Points)
Replied 29 August 2018

Hi Priti,
Since, your house is not occupied, it can be treated as UNOCCUPIED PROPERTY. So, you can show that property as self-occupied and take the annual value as NIL as per section 23(2).
The concept of deemed let-out property arises only when you own two or more house properties.
You can also claim HRA and Interest on loan u/s 24(b) limited to Rs. 2,00,000.