4 replies on this article “Rent exclusion for Housing loan interest”

1. Ashal Jauhari says:

   April 26, 2013 at 2:06 pm

   Dear Vignesh, here goes the calculation for you.

   A. Gross Rental Income to you = 33000
   B. Taxes paid to local body = 1500
   C. Net rental income = 31500
   D. Standard deduction @30% of C = 9450
   E. Interest paid on home loan = 60000
   F. Income from house property = C – (D+E) = 31500 – 69450 = -37950

   So this -37950 Rs. ‘ll be the loss adjustable to you from your salary income.

   Thanks

   Ashal

   Reply
2. Vignesh EswaraPrasad says:

   April 26, 2013 at 10:43 am

   Thanks for your replies.

   @Shankaranand
   So how that ‘notional’ rent is generally calculated?

   @Ashal
   60k py is interest, 33k pm is rent, 1.5k py is local body tax.

   Reply
3. Ashal Jauhari says:

   April 25, 2013 at 10:42 pm

   Dear Vignesh, can you provide the exact nos. of your query? How much yly rent you are receiving (actually your parents on your behalf)? What’s the interest you are paying to bank for the home loan? What’s the property tax paid to the municipal authorities?

   thanks

   Ashal

   Reply
4. shankaranand says:

   April 25, 2013 at 10:21 pm

   No you cannot. As the house owner it is assumed that the rent is paid to you. It doesn’t matter if you give the rent to someone else.

   Actually even if you keep the house locked, ‘notional’ rent is deducted from your tax benefit.

   Reply

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