Arunkumar R (Engineer) 01 June 2011

HL benefits, Receiving Rent from my Sister

Sir / madam.

I am currently living in my own house for which I am paying EMI's and claiming Home Loan Tax benefits under Self occupied property. My sister has moved into my house starting this year. I have the following questions.

1. Can my Sister pay rent to me and claim HRA benefits at her company.

2. I am willing to show this rental income in my tax returns in which case ,

Do my Home loan benefits are categorised under let out property ? ( for which there is no upper limit for Housing interest deduction )
What happens to my Home loan principal benefits ( 80c ) in this case ?

Looking forward to your responses.

Thanks

Arun

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2 Replies

prabhakar singh (advocate) 02 June 2011

ANS 1) YES,POSSIBLE

2)THE INCOME OF RENT SHALL BE UNDER HEAD----INCOME FROM HOUSE PROPERTY

3) NOT SURE ABOUT ,IF YOU WILL GET PRINCIPAL PAYMENT BENEFIT OR NOT.SINCEIT WOULD BE PARTIAL LETTING HOPEFULLY YOU SHOULD BUT DO NOT BANK EXPLORE WITH OTHERS TOO.