Housing loan & tax exemption

Discussion in 'Tax planning' started by jussi, Nov 14, 2013.

  1. jussi

    jussi Member

    here is a tax planning we supposed to do, which i want to discuss with you friends, 2 brothers purchased 2 flats in same building 1st flr & 2nd flr. this only one property which is held by each brother. salary income comes under 30 % in income tax slab. housing loan on each property is around Rs. 75,00,000/- EMI approx 75000/- p.m. (9,00,000/-per yr) both brother are salaried person, and having HRA (but not claiming) also. now our query is 1. can both brother make rent agreement with each other even they are in same building but on diff. floor ? 2. so can both brother claim HRA from employer ? 3. can they Add Rental Income To owned Property after 30 % deduction u/s 24. 4. as it is rented property will they able to claim actual Interest on house Property (after deducting rental income) 6. will it considered as tax planning, and any judgement related to topic ? Need Your Help on this issue.
  2. johnsmitchals

    johnsmitchals New Member

    Deductions will be there on interest paid in your mortgage and deduction of State Property Taxes, you would get some type of tax relief, it is possible that this relief is less than your standard deduction. A responsible tax preparer will run both scenarios and give you the higher deduction to lower your tax return liability.

    Sell House Quick
    house cash sale

Share This Page