Dear Sir,
I am having residential flat in Bangalore. Till FY15-16, I was claiming interest on housing loan benefit in my IT file.
From fy16-17, starting from the month of July 2016, I rented out this property for rent of Rs 17000/- ( including Rs 1500/- society maintenance charges). Simultaneously I moved to a rented place near my work location in Bangalore.
My questions:
- Can I claim both HRA and Interest on housing loan benefit in my file? Note : both the properties are located in same city that is Bangalore.
- As my owned property is co owned , till last year I have shown ownership proportion as 95 % in my name and 5% in my wife’s name. Can I now change this proportion as 50% each. Note: In the sale deed the proportion shared by husband and wife is not mentioned.
- Rental income is received in my wife’s bank account. Once the amount is credited to my wife’s bank account, I transfer this amount to joint savings account, from where EMI is paid. So is there any issue if I declare rental income in my file?? as the credit of rent amount is hitting wife’s account initially.
- Do I need to declare rental income in my wife’s ITR also ( based on ownership proportion) and also can she claim interest on housing loan benefit?
- Shall I show rental income as 17000/- per month in ITR which is inclusive of society maintenance charge or Rs 1500/- per month, or shall I show rental income of Rs 15500/- per month ( 17000-1500).
2 Answers
Hi,
1 - Yes, you may do so, can claim both tax benefits on home loan & HRA.
2 - Ideally if nothing has been mentioned then the ownership ratio can be considered as 50:50.
3 - Rental income has to declared individually as per the share of ownership. This is generally followed and suggested by most of the CAs.
4 - Yes, she can claim tax benefits, if the property is co-owned and she is a co-borrower too..
5 - Yes, you can deduct the society maintenance charges..you may add one clause in Rental agreement (if possible) that maintenance charges are payable directly to the society.
Suggested readings :
https://www.relakhs.com/understanding-tax-implications-of-income-from-house-property/
https://www.relakhs.com/joint-home-loan-eligibility-rules-income-tax-benefits/
https://www.relakhs.com/budget-2017-18-important-tax-proposals/
Thanks Sreekanth for your prompt and response.
I did not declare housing loan interest to my employer. Due to this, FORM16 issued by employer only shows HRA. Now while e filing, I want to declare rental income and also claim interest on housing loan benefit. Is that fine?
shall I declare rental income under the head “Income from other source”
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