Sir, Me and my wife have bought a house in Bangalore with 1.2 cr and both of us have taken loan if RS 50 lakh each.
We were taking benefits of interest payment of RS 2 lakh and principal deduction of 1.5 lakh each .
Now I have been transferred to other city and I have taken a house on rent at RS 30000 there in which 17000 is reimbursed by my institution.
Meanwhile I have let out my property in Bangalore at 40000 per month.
Now can you please let me know the tax implications of this.and rent income can be taken as 20000 each in my name and my wife's name.
Regards
Rajeev Sinha
The house property at Bangalore will be treated as Let out property, and the home loan benefit will be continued with full interest deduction to both of you, but with rent income included.
While the rent paid at your new location can be considered under HRA benefit.
CAclubindia
