Income Tax deduction on House rent, for non salaried individual

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  1. tbsm5

    tbsm5 New Member

    I have two house properties in Coimbatore. One propert let out and other property was self occupied till last year. I am not a salaried person and earning income only through house rent. I have shifted my residence to another city in a rented house for personal reasons. I would like to know, how the income tax calculation to be made. I have following questions which needs your expert opinion.

    1). As I am living in other city in a rented house, can I still claim one property as self occupied property in Coimbatore, even though it also let out after I moved to another city and staying in a rented house?

    2). If the answer to my question 1 is 'NO', then I have to show the rents of both the houses as income. In this case, can I deduct the rent paid to the rented house from the rental income from the two house properties?

    3). Is there any other better way of calculating the income for this situation of mine?

  2. ZED

    ZED Well-Known Member

    Answer to this point is also "NO".

    But deduction maybe claimed u/s 80GG , which has been cited for your reference.

    Let me know if you need to know anything else in this regards.

    80GG. In computing the total income of an assessee, not being an assessee having any income falling within clause (13A) of section 10, there shall be deducted any expenditure incurred by him in excess of ten per cent of his total income towards payment of rent (by whatever name called) in respect of any furnished or unfurnished accommodation occupied by him for the purposes of his own residence, to the extent to which such excess expenditure does not exceed five thousand rupees per month or twenty-five per cent of his total income for the year, whichever is less, and subject to such other conditions or limitations as may be prescribed, having regard to the area or place in which such accommodation is situated and other relevant considerations :

    Provided that nothing in this section shall apply to an assessee in any case where any residential accommodation is—

    (i) owned by the assessee or by his spouse or minor child or, where such assessee is a member of a Hindu undivided family, by such family at the place where he ordinarily resides or performs duties of his office or employment or carries on his business or profession; or

    (ii) owned by the assessee at any other place, being accommodation in the occupation of the assessee, the value of which is to be determined under clause (a) of sub-section (2) or, as the case may be, clause (a) of sub-section (4) of section 23.

    Explanation.—In this section, the expressions "ten per cent of his total income" and "twenty-five per cent of his total income" shall mean ten per cent or twenty-five per cent, as the case may be, of the assessee's total income before allowing deduction for any expenditure
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