Can residence mortgage tax profit be claimed for self-occupied and let-out properties?

I’ve taken residence mortgage for 2 properties. One is occupied on my own and the second is given on hire. As I perceive that I can declare curiosity profit of two lakhs on every home individually. Is my understanding appropriate? 

Your understanding that one is allowed to say solely two lakh of curiosity throughout the 12 months in respect of self-occupied in addition to let loose is partially incorrect. There are totally different guidelines for deduction in respect of curiosity paid on cash residence mortgage for self-occupied properties in addition to that are let loose. An individual is allowed to have most of two home properties as self-occupied. In case one occupies greater than two home properties for self-occupation, he has to decide on any two properties as self-occupied and the remainder of the properties are handled as if they’ve been let loose. In respect of such deemed to have been let loose properties it’s a must to provide notional hire at market fee for taxation. In respect of all of the self-occupied properties handled as such you’re allowed to say deduction of upto Rs. Two lakhs in mixture yearly. For let loose property together with the self-occupied one and which is handled as let loose you’ll be able to declare full curiosity towards your rental revenue. 

However, there’s a ceiling of two lakh rupees of loss computed beneath the Income from home property head for all of the properties taken collectively whether or not self-occupied or let loose which you’ll be able to set off towards your different revenue throughout the identical 12 months. Any loss in extra of two lakh rupees which can’t be set off throughout the present 12 months towards different revenue is allowed to be carried ahead. Such introduced ahead loss may be set off towards taxable revenue beneath the home property head within the subsequent eight years. 

Balwant Jain is a tax and funding skilled and may be reached on jainabalwant@ gmail.com and @jainbalwant on Twitter

Subscribe to Mint Newsletters

* Enter a sound e mail

* Thank you for subscribing to our publication.

Never miss a narrative! Stay linked and knowledgeable with Mint.
Download
our App Now!!