Hra
Querist :
Anonymous
(Querist) 10 December 2011
This query is : Resolved
Dear Sir,
Here is my query.
My wife and me both are working currently in IT field and we jointly own an apartment in Bangalore. We have recently taken a possesion of our apartment and given the same on rent. However, we are also living in the rented place as my wife office is closer from the rented place. All the EMI for the housing loan goes from my account an dusually the rent is paid by my wife. I would like to know the tax liability for both of us.
1) Are we eligible to claim the HRA benefit? if yes, than who should claim the HRA.
2) Can we also claim Rs. 150,000 interest amount. If yes, than who should claim it
3) What is the tax liabilty for the rented income. We have also paid an annual maintenace to the builder. Can we deduct that amount from the rental income.
Thanks for the help. I would appreciate if you can help me in this regard.
Regards,
Deepak
Guest
(Expert) 10 December 2011
1) Since your wife is paying rent of the accommodation, she would be eligible for rebate on HRA.
2) Since you are paying the EMI, you can claim rebate on interest.
3) Rent income, less maintenance charge, as permissible in IT Act, would be common to both of you and would form part of the individual income according to share in property of both of you, as both of you are co-owners.
soumitra basu
(Expert) 19 December 2011
You are also entitle to get a rebate on the principal amount repaid by you.
You may claim the interest on loan as a deduction from the rental income. Since both of you are the registered holder of the property, the 50% of the net income shall be taxed on both of yours.
