Query on house property taxation

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  1. Vishnu Prasath

    Vishnu Prasath New Member


    I have two houses.
    1) Hyderabad - Rented - Actual Rent of 8,300
    2) Bangalore - Self Occupied - As per market value, expect Rent of 15,000

    As per income tax site and few personal finance articles, I understand I have an option to select which house as self occupied and which house as let-out based on which is more tax efficient for the assessee.

    With that, can I choose my Hyderabad house as Self Occupied and choose Bangalore house as Let-out. Is it legally correct to do? I understand that I have to pay tax on expected rent of 15,000 (minus 30% standard deductions)

    The reason why I ask is, the first house, the housing loan is already paid. On the second house, the annual interest crosses 5.5 Lacs. So, I want to utilize the complete interest amount for tax benefits instead of only 4 lacs (2 lacs each for me and my wife).

  2. ZED

    ZED Well-Known Member

    Yes, you can.
  3. Vishnu Prasath

    Vishnu Prasath New Member

    Thanks for the reply. I am getting different opinions from one more CA.

    Does any one else have an answer or opinion on this? While I want to maximize my tax benefit, I want to make sure that I don't end up doing wrong things. Thank you
  4. ZED

    ZED Well-Known Member

    Your CA is correct. In case of actual rent out property we do not have option. Sorry I read your query in hurry. If its deemed let out then only one has an option.
  5. Vishnu Prasath

    Vishnu Prasath New Member

    Thanks for the reply and clarification. So, I have only one option of choosing my Bangalore House as Self Occupied
  6. ZED

    ZED Well-Known Member

    Yes Sir.
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