I have 2 flats in Pune. One is currently used for Self Occupancy and other is rented out. While submitting annual tax declarations, I avail tax benefit of principal and interest payment of housing loan on self occupied property and for the rented out property I add income/loss as per standard calculation (considering interest payment is higher than rental income, it eventually turns out to be a loss and helps in reducing my tax liability). Because of some personal reasons, I need to move into another apartment to accommodate all family members and proximity of school for my kids. In this case, if I move into a rented flat and rent out both of my owned flats, can I claim tax benefit on HRA for rent paid and Loss from both house properties that I own?
Hello Sir,
Yes, you can claim HRA benefit for the rented place where you will be shifting but you will have to show both of your other houses as Let Out and offer the Rental Income to Tax.
Trust this clarifies your query.
Feel free to get back for any further clarifications.
Thanking You.
Regards,
CA Rohit R Sharma
BCOM, CA, LLB - GEN, CERT. FAFP
Thanks Rohit...So even if I offer rental income from both properties to IT, considering the total interest outgo will be more than the rental income and I will actually be in loss, this shall help bring down taxable income. Correct? Pls confirm.
Yes Sir, You are Correct in your stance.
Thanking You.
Regards,
CA Rohit R Sharma
BCOM, CA, LLB-GEN, CERT FAFP.
Thanks Rohit
Dear Sir,
In case you move into a rented flat and rent out both of your owned flats, you can claim tax benefit on HRA for rent paid and Loss from both house properties that you own.
I think rohit has answered your query
My pleasure :)
I think this query is already answered by CA Rohit.
I think this query is already answered by CA Rohit.
