Income tax question

Am a salaried govt officer posted at delhi
Constructed first house in Jhansi in 2004 and occupied by parents. I am sole owner.
Loan taken for above house and pay EMI.

In Apr 2010 purchased second flat in NOIDA along with my wife as co owner and took loan as coborrower.
My wife is a govt employee too.
Flat delievered in Aug 2015.
EMIs are paid by me n wife together.
We are shifting to our new flat in Jun 2016.

how do we file the tax return for FY15-16
What should be our plan for the income tax benefit optimization?
Asked 9 months ago in Income Tax from Delhi, Delhi
Dear Sir,

In your case if effective possession is not transferred to you within 3 years of Loan borrowed than deduction of housing loan interest is not available to you.

With respect to your question it seems that you have taken loan in 2010 but house possession is transferred in the year 2015 only and hence you will not be eligible for housing loan interest deduction u/s 24(b). However you can still claim repayment of housing loan under section 80C. Also you can claim deduction with respect to earlier home loan u/s 24(b).
Vishrut Rajesh Shah
CA, Ahmedabad
194 Answers
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You can show your house in Jhansi as let out and declare annual rental value as rent and claim full interest benefit.

In you noida house you shall show as self occupied property and claim interest accordingly for self occupied house.
Shyam Sunder Modani
CA, Hyderabad
955 Answers
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Dear Sir,

Looking at the facts it seems most tax efficient to show ur Noida flat deemed let out and Jhasnhi flat as self occupied. 

Assuming interest to be paid on Noida flat is much more higher than Jhansi flat.

please contact us in case you require any further clarifications on the above
Abhishek Dugar
CA, Mumbai
766 Answers
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Hello Sir,

In order to help you with the Best Tax Saving Options we would require few more details like your Interest & Principle payment in both the loans as well as the average rental in both the places.

But still if the interest payable in your Noida Flat is not more than Rs.2 Lacs in one Financial Year, then it is better if you show your Jhansi flat as Deemed to be Let out and your Noida flat as self occupied.

Trust this clarifies your query. 

Feel free to get back/ call back for any further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB - GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
719 Answers
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