I have a property which is given on rent of Rs.4000 also loan is taken on this property whose EMI is deducted from my salary. I have never claimed any tax rebate on this property. Now should this be shown in my return? I have also a property which is self occupied and I take rebate on this. please answer
Up toRs.200000 interest income on housing loan or EMIs is not levied tax and can be claimed as deduction. In our case only Rs.48000 is gross annual rentalincome so no tax but is allowed as Rs 48000 as deduction from taxable income for our benefit. under IT Act.1961.
For housing loan one pays interest and does not receive interest. If interest is paid an equivalent amount to the extent admissible, can be deducted from one's taxable income. If Rs.48000/- is rental income it will be taxable income, which should be added to other taxable income. From such income interest paid to the extent admissible can be deducted to arrive at net taxable income. It is not right to say that rental income is not taxable.
See section 24(b) of IT Act. Up- to Rs.200000 lacs Interest onborrowed capitall is exempt and claimed as income for deduction from taxable income. From this Standard deduction ,Municipal taxes, Repairs and renovation etc from house rent annual incomde should be deducted,.. Rs.48000 is not taxable but allowed ad deduction from taxabole income.In my hey days I*d practised on Income Tax side also and stil off and on doing IT cases at home.If gross annual inc9ome exceeds 2 lacs then it is taxable.
Under Section 80EE of the Finance Act interest on loan taken up to Rs.50,000/- is deductable from taxable income. One of the conditions for such deduction is that the assessee should not own any house property on the date of sanction of the loan. Here the assessee also has a self-occupied property. Hence he cannot avail this deduction. This is as far as Assessment year 2018-19 is concerned. The question of the queryist cannot be with respect to future years.