Continuing our discussion to a step in relation to our previous related posts  on FAQ on House Property.

1)       How can I use home loan interest to save tax?

 Ans: In case of Let out and Deemed to be Let Out properties, you can deduct the actual interest paid by you on a loan taken for the purpose of buying, repairing, constructing, renewing or reconstructing the house property in question, to save your tax.

For a Self Occupied House Property, deduction on account of interest on Home Loan (loan taken only for acquisition or construction of the property) is restricted to Rs. 1, 50,000.

2)      I am buying a second house, how can I save tax on it?

Ans: If you buy your first house in single capacity, the other house can be purchased in the name of your spouse – thus, both of you would have just one house, and won’t have to pay income tax on an income that you don’t even earn. In other words, you will avoid paying taxes on a Deemed to be let out property.

3)      If there is a loss under the head ‘Income from House Property’, can it be adjusted against other income?

Ans:    Yes, any loss under the head ‘Income from House Property’ can be adjusted against income under any head in the relevant previous year.

4)      Can the loss under the head ‘House Property is carried forward to the subsequent assessment years?

Ans :    Yes, from A.Y.1999-2000 and onwards loss under the head ‘House Property’ which cannot be wholly set off against income from any other head in the same assessment year can be carried forward and set off only against income from House Property for immediately succeeding 8 assessment years.

5)      The property is owned by two or more persons and their respective shares are definite. Will the income from such property be assessed in the hands of the association of persons?

Ans:     No, the income from such property will not be assessed in the hands of the association of persons. The share of each person in the income from the property shall be included in his total income.

Read Rest Of The FAQs here:

FAQ on House Property – Vol.I

FAQ on House Property – Vol.II

FAQ on House Property – Vol.III

FAQ on House Property – Vol.IV

FAQ on House Property – Vol.V

FAQ on House Property – Vol.VI