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.