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Own house but not self-occupied

Sunil (Owner) (27 Points)

05 March 2015

Dear Experts,

I recently purchased an apartment in Bangalore on the outskirts. But I am not occupying the house since my office is far away and I am staying close to my office. I have the following questions:

1. Since I am located in the same city, can I claim HRA for the rent I am paying for the house I am staying nearby to my office?

2. I do not want to let-out my own property at the moment since I have plans to shift there in the next 1-2 years. How does the tax treatment happen? Do I have to show NIL Income from house property or I should pay Income tax basis notional rent generated?

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3 Replies

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 05 March 2015

Definitely you can claim HRA for the rent you are paying

Regarding your own House you can do tax planning presume a notional rent has been obtained on letting out to relatives and from this income entire interest paid is deducted and this reduces your tax burden

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Sunil (Owner) (27 Points)
Replied 05 March 2015

Hi Sivaram,

Any specific inputs on how to plan using notional rent? I dont want to let it out to anyone. Any documentations I need to maintain?

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 05 March 2015

No Documentation needed in this case your computation from House property will be negative if you pay huge interest on the house purchased just give declaration to employer that I earn so much as rent from the property let out and from this you deduct the entire interest