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Loss of income from house property

Mohan Kumar (Others) (49 Points)

27 December 2014

Sir,

I am having 2 flats in Chennai. one is rented out and my family was staying in another for first 2 months of this

financial year. we moved to Bangalore in June 2014 and the flat i was living in Chennai is rented out. In Bangalore i am

staying in rented house. Now from the perspective of claiming housing loan interest which house i shall declare as self

occupied.I dont have any self occupied own house in Bangalore. the house in which my family was staying in Chennai is

rented out from July 2014. Can i declare this house as self occupied and claim loss of income on account of interest on

housing loan. if i declare this house as self occupied how do i account for the rental income i got for the period from

July 2014. Kindly guide me

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5 Replies

Pranjal Mittal (Student) (90 Points)
Replied 27 December 2014

You can assume anyone of your Chennai house to be self occupied. Because income tax grants every individual a right to have self occupied property. And the rental income earned from this property will be exempt as income from self occupied house is not taxable (Income tax assumes its GAV to be Nil)

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Mohan Kumar (Others) (49 Points)
Replied 28 December 2014

thanks Pranjal. this looks good to me. However will ITax authorities buy this argument. I am worried becuause i am receiving rental income for this house. if they dont agree, then i will not have anything to declare as self occupied house as i am now staying in rented place in another city .

dear Sirs, can you please confirm that i can go ahead and declare this house as self occupied and claim tax exemption for the housing loan interest on this property and ignore the rental income from this property.

Thanks in advance

Mohan

Mohan Kumar (Others) (49 Points)
Replied 29 December 2014

dear Sirs,

can you please confirm this

thanks in advance

Mohan

Mohan Kumar (Others) (49 Points)
Replied 05 January 2015

dear sir,

could you please help me to confirm the above. when i talked to the payroll dept in my office they were not ready to buy the above point. could you please help with suggestions

thanks a lot in advance

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 09 February 2015

Hello, If you own more than one Self Occupied Properties (SOP), you have a choice to treat any one of the properties as SOP. The other such property (ies) which lies vacant will be treated as Deemed Let Out Property (DLOP) under the Act. But in your case both house are let out, you can’t treated as self occupied property.