tax exemption

raghavendra (Querist) 30 December 2014 This query is : Resolved
Sir/madam

i am working for a company my salary is 10lakhs per annum, i am taking exemption on rent paid, now i buying flat in bangalore availing Loan and i am not staying in that flat i am continuing to stay in rental house only.

Am i eligible to get exemption on both renyal house and flat loan also, is it possible please advice me.

Thanking you

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Devajyoti Barman (Expert) 30 December 2014
meet a tax consultant.

Dr J C Vashista (Expert) 31 December 2014
Consult local taxation lawyer or CA.

Anirudh (Expert) 31 December 2014
Yes. It is possible.
Your Hra exemption is as per normal rules.
In regard to your house (i hope that you have given out on rent) your total rental income minus 30% of it will be treated as your income from house property. From this income from house property, the interest which you pay on home loan will be deducted. The balance (whether positive or negative figure) will be taken into account while computing your annual total income and taxed accordingly.

In case you have not rented your house, then the annual value of it will be worked out (taking the rent which the property would have fetched in the area). The rest of calculations are as stated above. If you can prove that the house was not rented out then the value will be taken as Nil and other calculations as stated above will be worked out.

malipeddi jaggarao (Expert) 31 December 2014
It is possible. Expert Mr.Anirudh clearly clarified your doubts.

Rajendra K Goyal (Expert) 31 December 2014
Agree with the expert Anirudh.

Guest (Expert) 31 December 2014
Consult the CA Club or Good CA for a Practical and Valid Advise.

T. Kalaiselvan, Advocate (Expert) 01 January 2015
Agreed with expert Mr. Anirudh's opinion.

M/s. Y-not legal services (Expert) 03 August 2015
Agree with expert Anirudh's opinion

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