HI MR X AN INDIVIDUAL HAD PURCHASED HOUSE PROPERTY IN LONDON BY SELF FUNDING AND LOAN FROM BANK IN LONDON,
HE HAS LET OUT THAT PROPERTY AND EARNING RENTAL INCOME AS WELL AS PAYING INTEREST ON LOAN AVAILED IN LONDON.
MY QUERY IS RENTAL INCOMW WILL BE TAXABLE IN INDIA NET OF INTEREST EXPENSE OR HOW?
Assuming he is resident the rental income would be taxable under the head income from House property as if it's from normal house property in India. The rent amount would be converted in INR using TTBR rate as on last day of previous year as per Rule 115.
Deduction as per Sec 24a(30% deduction) and Sec 24b(interest) would also be allowed. Even interest paid outside india if it's as per conditions prescribed for Indian house property, will be allowed.
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