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TIMES NEWS NETWORK [MONDAY, SEPTEMBER 08, 2003
12:55:04 AM]
The assessee stays in rented
premises as the house for which the loan was taken is under
construction. Can the assessee claim rent and repayment of
interest and principal together in the same assessment year
(i.e. both U/s 24 (b) and 10(13A)?
A S Sharma
As per Section 10 (13A) the
of Income-tax Act, exemption is available if the residential
accommodation occupied by the assessee is not owned by him.
Now, as far as deduction of interest is concerned, Section
24 says.: Where the property has been constructed with borrowed
capital, the interest, if any, payable on such capital borrowed
for the period prior to the previous year in which the property
has been acquired or constructed as reduced by any part thereof
allowed as deduction under any other provision of this act,
shall be deducted under this clause in equal installments
for the said previous year and for each of the four immediately
succeeding previous years. Since, you have stated that the
property is incomplete, interest U/s 24 cannot be claimed
right now.
If the assessee is claiming
rental income as well as exemption U/s 24 for the housing
loan interest, whether the employer is supposed to include
both rental income and interest exemption on loan while making
TDS from salary?
D Majumdar
As per Section 192(2B), Where
an assessee receives any income chargeable under the head
'Salaries' has in addition, any income chargeable under any
other head of income (not loss under any such head other than
the loss under the head 'Income from house property') for
the same financial year, he may send to the person responsible
for making the payment referred to in sub-section (1) the
particulars of: Such other income and of any tax deducted
thereon under any other provision of this chapter; the loss,
if any under the head 'Income from house property', In such
form and verified in such manner as may be prescribed, and
thereupon the person responsible aforesaid shall take:
Such other income and tax if any deducted thereon, and The
loss, if any under the head 'Income from house property' also
into account for the purposes of making the deduction under
sub-section (1).
Accordingly, the assessee has to submit declaration in Form
no. 12C after working out the income under the head 'Income
from house property', which itself will be net of interest
on capital borrowed.
I have taken a loan from a bank
as well as from my employer. I am getting HRA too. Whether
I can get HRA exemption by submitting rent receipts as staying
in rented house. And repayment of loan interest to employer
and bank, which can I show as self occupied saying that my
children are staying there for higher education. Please advice
whether I can claim both benefits for my tax calculation?
M P Gupta
As per Section 10 (13A), you
can claim exemption. As per Section 23(2), Where the property
consists of a house or part of a house which is in the occupation
of the owner for the purposes of his own residence or, can
not actually be occupied by the owner by reason of the fact
that owing to his employment business or profession carried
on at any other place, he has to reside at that other place
in a building not belonging to him. Since property is not
used by you, you can not claim its annual value to be NIL.
You should use clause (b) and claim that the property cannot
be occupied by you owing to employment and hence, you will
be able to claim interest.
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