shikha gupta (service) (45 Points)
29 August 2012SIR,
OUR OFFICE HAS A SCHEME OF SELF LEASE ,IN WHICH INSTEAD OF HRA ,LEASE RENT IS PAID FOR THE PROPERTY WHICH IS ACTUALLY IN HIS NAME.MY QUERY IS WHETHER THE SAME SHALL BE TREATED AS SELF OCCUPIED PROPERTY OR LET OUT PROPERTY. WHETHER ACTUAL INTEREST PAID ON BORROWED CAPITAL CAN BE DEDUCTED IN PLACE OF rS 150000 .
REGRADS,
SHIKHA
CA. Subhash Dangi
(Chartered Accountant)
(1784 Points)
Replied 29 August 2012
Both HRA and Lease rent falls under the definition of Rent. The question of SOP or LOP does not arise since the assessee is not the owner of the property.
By virtue of not owning the property, the interest payment on borrowed capital for lease amount is not deductible under the IT Act.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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