• Tax calculation on 2 apartments having home loan in another city

I have 2 apartments  in Bangalore .Both I took possession in  August 2017.
Both are having home loans and planning to give for rent from Nov 2017 onwards .
 
I work in Hyderabad and living in rented apartment .
I can claim HRA as I am staying for rent in another state .
 
Could you please explain how can i avail tax benefits for my 2 apartments in BANGALORE and under which sections .
Asked 8 months ago in Income Tax from Hyderabad, Telangana
Hi,

Yes you can claim tax beneift for two owned houses under section 24 (interest) and 80C (principal).

You can also claim HRA for the rent paid in Hyderabad.
Abhishek Dugar
CA, Mumbai
2918 Answers
121 Consultations

5.0 on 5.0

yes you can avail tax benefits of your 2 apartments , show rental income from apartments under the head Income from House Property and interest u/s 24 , if interest is more than rent received then you can claim upto Rs. 200000 and can save income tax 
Lalit Bansal
CA, Delhi
515 Answers
36 Consultations

5.0 on 5.0

Hi

The rental income from the apartments in Bangalore shall be chargeable to tax. 30% standard deduction shall be allowed on such rental income. Additionally Deduction under section 24 shall be allowed for the interest on home loan.
Also, Principal repayment of home loans shall be allowed as deduction under section 80C.

You can claim HRA for the flat in Hyderabad.
Lakshita Bhandari
CA, Mumbai
1453 Answers
39 Consultations

5.0 on 5.0

Hello,

Whatever amount of rent you pay will be first adjusted against the rent received by you and then if any balance amount of rental is left will be taxed.

Any balance of interest can be adjusted your salary income.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP 
Rohit R Sharma
CA, Mumbai
2089 Answers
91 Consultations

5.0 on 5.0

Dear Sir,

Please note following :

You can let out the apartment show its income and and can claim interest payment against the said income.

Also you can claim rent payment as HRA since you are leaving in other state.
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

Hi,

If you are paying interest for a let out property there is no restriction on claiming interest free that property. You can claim entire 5 lacs subject to the fact that your rental amount from these property is sufficient.

Because, Section 71 has been amended to restrict the set off of loss to 2 Lacs. So if your taxable income from house properties is 3 lacs, then you can claim entire 5 lacs as interest deduction.

Please feel free to call/ revert in case you need more clarity.
Abhishek Dugar
CA, Mumbai
2918 Answers
121 Consultations

5.0 on 5.0

Hello,

The balance interest over and above Rs.200,000/- cannot be claimed anywhere, that is a cost to the investor. You can claim it as a Cost of Purchase while calculating your Capital Gains though.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
784 Answers
23 Consultations

5.0 on 5.0

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