manage tax of three houses

POSTED BY Parijat Chakraborty ON May 2, 2013 10:38 am COMMENTS (3)

I want to maximize tax benefit from my properties:

1. At New Delhi: Bought in 2004 and the loan is paid off. I stay in that

2. At NOIDA: New Flat, getting possession in December 2013. Want to put on rent.

 

  • Pre-EMI till March 2013 is about Rs.2.5L. 
  • Pre-EMI for the period Apr-Dec 2013 is about Rs.1.2L. 
  • Interest for Jan-March 2014: Rs.1.3L
  • Interest for FY2014-15: Rs.3.5L
  • Notional rent: 8,000 per month

 

3. At Kolkata: Purchasing in June. My parents will stay there.

 

  • Interest for June’13 to March’14: Rs.3L
  • Notional rent: 10,000 per month
Can I show the 1st property as self-occupied (which is the actual fact) and show other 2 properties as on rent and thus claim the tax benefit for the entire interest amount? If I show any of the other two (no 2 or 3) as self-occupied, the tax exemption limit on interest gets restricted to 1.5L.
The property in Kolkata will not be let out as my parents will stay there. Do I need to treat that as deemed-rented property and consider the notional rent?
How do I maximize the tax benefit? Please suggest.

 

3 replies on this article “manage tax of three houses”

  1. Dear Parijat, the total interest benefit for Noida Property ‘ll be interest paid in FY 2023-2014 + 50000 Rs. from Pre EMI interest of prev. years. this 50K ‘ll be available over & above the basic interest for 5 FY, starting from the FY of possession i.e. 2013-2014.

    Thanks

    Ashal

  2. Parijat Chakraborty says:

    Thanks Ashal, it is indeed helpful.

  3. Dear Parijat, Noida & Kolkata, both property should be declared as deemed rent by you for the FY 2013-2014. Full interest ‘ll be available for you in both properties. Additionally you ‘ll be able to get 250000/5=50000 Rs. pre EMi interest benefit till march 2013 for next Fy for noida property.

    thanks

    Ashal

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