My son stays in a self occupied flat in Hyderabad owned by him.Now he has been transferred to another city.My son wants to move to the new city keeping his own house VACANT locked and in the new city he wants to rent a flat for his dwelling.
My question is from the next income tax filing
1) whether my son can enjoy tax benefits due to the house rent given when his own house at Hyderabad is vacant.
2)If his stay at the new city is prolonged and he wants to let out his flat at Hyderabad whether my son can still enjoy tax benefit out of the house rent to be given at the new city.
Please intimate the income tax benefit due to house rent given in both the cases
1)once when his own house has at Hyderabad been kept vacant
2)when his house has been let out
Please reply.
1 Answers
Dear Sir,
1 - Yes, he can claim HRA benefit (if it is part of his Salary emoluments).
2 - Yes.
3 - a) He can declare it as a Let-out property kept vacant and get the tax benefits. Here, the rental value would be NIL.
b) He can declare actual rental income and claim tax benefit accordingly.
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