house property query very confusing

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Guest

dear all

a person has divided his house into 3 similar units.2 units were self occupied by him and 1 unit is let out.fair rental value of that house is rs.90000.rent received in respect of let out part is rs.30000.muncipal tax is rs.3000 for the whole house.now he want to do some repairing work in that house for that he has taken a loan.interst payable anually is rs.60000.

friends plz show me the tax treatment of all units and specially for division of interest among between the units.

1.whether he can claim interest for the two self occupied units rs.20000 each.my question is suppose if the assessee has not divided this house into units and use the whole house for residential purpose then he can claim only rs.30000 as interst deduction and in the present case he can get not only the benefit of rs.40000 for self occupied part but also get pure income from let out part bcoz if we calculate it then we get nil income from the let out part.

plz make me correct if i am wrong and plz gave ur valuable suggestions

Replies (7)

sudhir rawal

B.COM/PCC/ARTICLE/'O'LEVEL

319 Points Joined February 2009

AGREE WITH AMIR

Amir

Learner

4016 Points Joined December 2009

Dear Tarun,

Annual Value of 2 self occupied units - Nil

Gross Annual Value of let out unit will be higher of MV or Actual Rent i:e 30,000.

Now Municipal taxes can be deducted only in respect of this 1 unit i:e Rs. 1,000

So Net Annual Value of all 3 units will be Rs. 29,000

Now deduction of Interest -

In respect of let out unit will be allowed in full i:e 20,000

In respect of self occupied units Rs. 40,000 but max of Rs. 30,000 i:e 30,000

Income/(loss) u/h HP = 29,000 - 30%(29,000) - 50,000 = (29,700)

Guest

dear sudhir i think the reply submitted by you is incorrect bcoz as sec.23(3) applies for house or part of a house similarly sec.23(2)a is applicable on house or part of house

sudhir rawal

B.COM/PCC/ARTICLE/'O'LEVEL

319 Points Joined February 2009

SORRY FOR INCORRECT REPLY I HAD MODIFIED IT AND WILL NOT BE HAPPEN AGAIN

Guest

thanks so much amir bhai for clearing my doubt in respect of interst devision and amir bhai plz tell me whether the deduction of rs.30000 is applicable for each year in which we pay interest or the maximum amount of deduction is rs.30000 for the whole loan

Guest

hey dear sudhir u have no need to say sorry some time it happens bcoz of misunderstanding the problems.it's ok man.thanks for reply

sudhir rawal

B.COM/PCC/ARTICLE/'O'LEVEL

319 Points Joined February 2009

yar

baat chae jaise bhi hoo

mere liye galti hona to sorry kahne ki bhi obligation banti hai

aur afterall yaha par ye open public forum hai agar sabke saamne galti ki hai to sorry to kahna chiye

kyoki in caclubindia your opinion can be different from other but your calculations your methods must compliance with law and what ever law says you must follow haa shyaad kahi law ko samjne me galti ho gayi par

us galti ko accept karne ke baad is baat ki assurance to muje mil jaygi ki aage se kabhi eaise galti nahi hogi