How to claim Home Loan Interest tax benefit in case of just 2 months rented stay

POSTED BY Gaurav ON January 8, 2014 8:14 am ONE COMMENT


Please respond to earliest opportunity, since I have to declare tax deduction proof to my employer.
This is details of my first house loan-

Possession Date- 20-March-13.

Let out for 2 month (Apr-13 and May-13), I was staying in rented house since rent was paid till May-13. Then  I self occupied the house from June-13 till say Mar-14. I read somewhere that-“If a house has been let out even for a single day in a year but has remained self-occupied for remaining 364 days, it shall be deemed to be let out for the whole year.”

Can I declare my house as let out for whole year and claim full interest paid appx 2.5 lacs? If yes then what would be annual value of the house (Actual rent received was 20k).

Thanks in advance,

One reply on this article “How to claim Home Loan Interest tax benefit in case of just 2 months rented stay”

  1. ashalanshu says:

    Dear Gaurav, for you the calculation ‘ll be like this.

    A. Annual letable value of house = 10000*12 = 120000
    B. Rent which can not be claimed = 10000*10 = 100000
    C. Gross rental income from house property = A – B = 20000
    D. Property Tax paid to municipal authorities if any = ???? (your own number, for sake of calculation I’m using 1000) = 1000
    E. Net rental income = C – D = 20000 – 1000 = 19000
    F. Standard deduction on the upkeep and maint. of the house = 30% of E = 5700
    G. Interest paid on borrowed capital = 250000
    H. Income from house property = E – (F+G) = 19000 – (5700+250000) = -241700

    the H above is a loss from your house property which can be set off against your salary income.



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