Hi,
I had taken a house loan of 40 Lakhs and for which I am paying 4 Lakhs bank interest per year. The property is let out to my brother who is paying me rent of suppose 5000 per month.
Let Us suppose the actual I am paying to the bank is 4 Lakhs. and Along with this i am paying a interest of 4 LPA. (In total paying 8 Lakhs to bank).
If the property is a let out property then the whole interest that i am giving to the bank i can claim the rebate on this interest. Since i will declare the gain of this property as = 60,000 – 4,00,000 = – 3,40,000 (-ve).
So I can save tax on this whole amount of “-3,40,000 (-ve)” or not ?
Thanks,
Ram