I have purchased a flat with home loan for a 15 years term in 2010 and I am paying EMI since 2010. Now I booked an under construction flat in July2019 with home loan and EMI stated wef Oct 2019.Flat will be handed over by Dec 2021. Recently Fin Minister in her speech informed that 2 flat can be considered as self occupied for tax filing. What is my tax liability.
Please send the reply asap at my email. I want to file tax return for AE 2020-21
Hi,
You can consider first property as self occupied. However, since second house property is still under consideration, you don't need to worry about that. That property will not be considered as deemed let out.
So, you don't need to include any income from second house property in your income.
- Either the second house is self-occupied or it is not occupied due to his profession at other place where he has to reside at house not belonged to him. It is applicable from F.Y. 2020-21 i.e. AY 2021-22 and not for AY 2020-21.
- you will become owner in Dec 2020.
Since you are going to receive possession in December 2021 so I am assuming your sale deed will also be registered then and you have only entered into an agreement now.
In that sense you need to second house from next year.
Secondly yes 2 houses have been said to be self occupied what that means is even if you own 2 houses you don't have to pay deemed rent on 2nd house as we required earlier.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hello,
Since the second property is still under construction, it won't affect your tax liability.
The Second SOP allowability would be applicable from this F.Y. 2020-21. and therefore after the completion of the second flat can consider the same as SOP.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
You don't need to include the income of second house in your income.
It is applicable from F.Y. 2020-21 i.e. AY 2021-22.