Hi Sreekanth,
I had bought a house some 10 years back and have repaid the home loan. The house was a joint ownership with my father but I was the only borrower. I had availed the interest tax exemption. Currently my parents stay in that house and its not let out. Now, I wish to buy a second house and would take another home loan. I understand that I can avail the interest tax exemption again. My question is - Would there be any loss of this exemption because now I would be owning 2 houses. As mentioned earlier, I am not earning any money from my first house.
Thanks,
Priyansh
4 Answers
Dear Priyansh,
You would then be owning two properties.
If you own two self-occupied properties (assuming the new one, you would be using it as Self occupied Property) then you have to declare either of the properties as Let-out one.
Kindly go through below articles :
Thanks Sreekanth. Went through the articles. If I consider my old house as let out and the new one as SOP, what decides the rental income? As I mentioned earlier, it is my parents staying there and hence I am not getting any rental income. In that case, can I mention that the rental income is 0 while filing income tax?
Hi,
In case, you decide to declare your first (old) property as 'Deemed to be let-out' then you can take 'Standard rent' that is prevailing in that location as your rental income (generally, standard rent value could be higher than Fair rent or Municipal value..)
You can then deduct Property taxes & 30% of net annual value (NAV = rental income - taxes) as standard deduction.
You may kindly consult a CA in this regard.
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