Hi,
I am having a home loan taken out in 2007 and am able to get tax exemption under both section 24 u/s (for interest) and 80c (for principal) until March 2011 as my property was under construction. However, I have now rented out the house (Rs. 1,56,000 per annum) and am receiving rent from this month, April 2011. So, I need to declare this income on my tax sheet. My employer has requested the following declarations: Deduction Interest u/s 24: Rs. 1,76,000 Deduction Repairs u/s 24: Rs. 1,56,000
My Questions: 1) Why should the income from the house be declared under "Repairs"? 2) What will be the tax exemption for my home loan interest? Will I receive full exemption for Rs. 1,76,000 or will it be restricted to Rs. 1,50,000? 3) Is it such that only (Rs. 1,76,000 - Rs. 1,56,000) will be tax exempted?
Please address my queries.
I am having a home loan taken out in 2007 and am able to get tax exemption under both section 24 u/s (for interest) and 80c (for principal) until March 2011 as my property was under construction. However, I have now rented out the house (Rs. 1,56,000 per annum) and am receiving rent from this month, April 2011. So, I need to declare this income on my tax sheet. My employer has requested the following declarations: Deduction Interest u/s 24: Rs. 1,76,000 Deduction Repairs u/s 24: Rs. 1,56,000
My Questions: 1) Why should the income from the house be declared under "Repairs"? 2) What will be the tax exemption for my home loan interest? Will I receive full exemption for Rs. 1,76,000 or will it be restricted to Rs. 1,50,000? 3) Is it such that only (Rs. 1,76,000 - Rs. 1,56,000) will be tax exempted?
Please address my queries.