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Two houses: can show any as self occupied?

Vicky (IT) (37 Points)

13 July 2012

I have two houses in same area. The flat where I stay is on loan and other flat is loan free.

Can I show flat (where i am staying) as let out for tax calculation in my company?

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12 Replies

Rachaita Aggarwal (CHARTERED ACCOUNTANT) (96 Points)
Replied 13 July 2012

Tax on House property is levied only when a person is owner of the house. If U r owner of that flat, tax will be levied, However if U have 2 House properties, u can't claim both as self occupied. One H.P. will be deemed to be let out..and its your choice which house u want to claim as self occupied..

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Prateek Agarwal (Sr. Executive - Finance & Accounts) (1732 Points)
Replied 13 July 2012

Agreed with above.

Prakshal M. Shah (CA & M.Com) (69 Points)
Replied 13 July 2012

Dear Friend,

House in which u r staying ( House with Loan ) take it as self occupied property. u will get deduction of principal amount u/s 80C & deduction of interest paid on loan under house property. Loan Free House Considered as deemed let out property.

thanks

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*RENU SINGH * (✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ ) (21627 Points)
Replied 13 July 2012

Originally posted by : Prakshal M. Shah
	Dear Friend, House in which u r staying ( House with Loan ) take it as self occupied property. u will get deduction of principal amount u/s 80C & deduction of interest paid on loan under house property. Loan Free House Considered as deemed let out property. thanks

i agree but not sure......

CA Deepesh Ruhela (Keen to Learn) (3271 Points)
Replied 13 July 2012

fully agree with Prakash...consider that house which is benificial for you...

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Rachaita Aggarwal (CHARTERED ACCOUNTANT) (96 Points)
Replied 13 July 2012

According to me, u should check both options and then only decide which option would be beneficial.. U can consult ur CA for this...

JITENDRA KUMAR GARG (ARTICLE ASSESSTANT) (46 Points)
Replied 14 July 2012

House in which u r staying ( House with Loan ) take it as self occupied property. u will get deduction of principal amount u/s 80C & deduction of interest paid on loan under section 24(b) under house property. Loan Free House Considere

Ashwani Narnoli (.) (1843 Points)
Replied 14 July 2012

Agree with above, firstly calculate your liability fom both options and then decide.

Uma Shankar (Executive Accountant) (39 Points)
Replied 16 July 2012

Hello

You show only one house as self occupied and get interest rebate in sec. 80C and you may option to choose show loss on house property up to Rs.150000/-.

Pawan Mittal (CA Final) (711 Points)
Replied 16 July 2012

Yes, I think you can.

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varun (manager) (68 Points)
Replied 22 August 2012

i want to confirm from my friend. if second house is not rented out achully no consumption of water and electricity.

then also we can choose it as self occupied.

Mihir Manohar (CA Final - Article Assistant) (474 Points)
Replied 25 August 2012

But how can the proof generated as you have let out the property in which you are staying? More over if more than one house properties are self occupied or unoccupied, then you can avail an option.... and not in the case where one is self-occupied and other is let-out.