Interest a part of dwelling mortgage for one let loose residence includes spherical Rs. 3.50 lakhs. I receive a month-to-month lease of ₹15,000 p.m. I preserve in a rented residence. Under the circumstances can I declare loss from the house let loose by me as deduction in opposition to my wage income?
For computing taxable income, you may be allowed to say an unusual deduction of 30% of the lease acquired by you. In addition to the standard deduction, you may be moreover allowed to say deduction in respect of curiosity paid on money borrowed for buying, organising, renovating and repairing the house. In case the house is self-occupied, you may be allowed to say most of two lakh deduction for optimum of two self-house property taken collectively.
However, in case the house property is about free chances are you’ll declare deduction for full curiosity paid on the money so borrowed nonetheless the loss beneath the head “Income from House Property” could also be set off in opposition to totally different income all through the equivalent financial 12 months as a lot as Rs. 2 lakhs and any unabsorbed loss over 2 lakhs have to be carried forward for set off in opposition to residence property income in subsequent eight years.
Against your rental income of Rs. 1.80 lakhs, you may get an unusual deduction of Rs. 54,000/- leaving Rs. 1.26 lakhs. After adjusting curiosity of Rs. 3.50 lakhs the loss beneath the head “Income from residence property” head includes Rs. 2.24 lakhs. Since chances are you’ll set off most of solely two lakh of loss in opposition to your totally different income collectively along with your wage income the steadiness Rs. 24,000/- unabsorbed loss have to be carried forward for subsequent eight which can be solely be set off in opposition to the constructive income beneath the house property head.
(Balwant Jain is a tax and funding expert and could also be reached on [email protected] and @jainbalwant on his twitter cope with)
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