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3 comments

  1. Very useful Blog.Very informative.Thanks for sharing Article.

  2. I currently living in my own house.Have paid for a flat with bank loan on 31 03 2014.Possession given on 30 06 2017.Planning to shift sometime in October/Nov 2017 .
    Q.1 Pre-Emi for FY 2016_17 consists of portion towards principal repayment.Does it qualify for 80 C
    Q.2.Should the interest payable on loan for FY 2017-18 be split for claiming under section 24 because I am shifting to new house in Oct/Nov
    Q 3.My current house I am planning to let out,but I may not get a tenant immediately.What is tax implications on current house.
    Q 3.Is it worthwhile to sell current house and reduce loan burden and avoid capital gains tax which will be substantial.

    • Prateek Agarwal

      Q.1- 80C does not allow deduction for pre-construction repayment of principal.
      Q.2 – No. There is no need to split interest. Whole of interest for f.y 2017-18 is allowed.
      Q.3 – The income if any received as rent should be shown under the head ”Income from house property ”. The Gross Annual Value of the property will be actual rent received or receivable.
      A basic deduction of 30% can be allowed under section 24(a) and any interest paid on loan taken can also be allowed as deduction under section 24(b).
      Q.4 – It must be a personal decision whether to sell or withhold the property. If only financial calculation is to be made then send me figures, I will make a comparison and tell you. You can mail at prateek@taxadda.com to maintain privacy.

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