Welcome to my blog.

Thanks for these URLs.

There are two cases:
a)Sec. 24 deductions when the property is self occupied, and
b) when the property is let out.

In pure lay man’s terms, the sec 24 deduction is subject to a maximum cap of Rs. 1,50,000 when the property is declared as self occupied.

But in case of property let out, the entire interest component ,even if it exceeds Rs.1,50,000 is deductible
(unga style la sollanumna negative income ‘added’ to the salary). the only condition is income from such let out property will be charged to income tax. which shud be okay if i can claim 3,00,000 and add a nominal rent of 3,000 per month.

http://sify.com/finance/fullstory.php?id=14196378

>>I am NOT a Tax consultant….

Please ask your Tax consultant about this:-)

In those URLs.
i was not able to find a provision which explicitly states one cannot claim HRA if he is claiming deductions under sec. 24

What if i have built a house in coimbatore, and now am living in a rented accomodation in chennai? You mean to say i cannot claim HRA??

http://www.rediff.com/getahead/2005/apr/25home.htm

Thanks for your suggestion to examine my head. Double-checking is always good, be it head or facts

Oh yeah, thanks for the reward offer too Sorry i am not in the business of proving myself to all and sundry.

Pls check your facts.

What you are calculating is the ‘Income chargagble under ‘Income from house property’ (Section 24 of the IT act.

Annual value refers to the Rental value or rent recieved less by municipal taxes paid. In case of self occupied it is NIL (Ref Sec 23 of IT Act)
http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2007ITAct/section23.htm

The income chargeable to you from House propertyis the Annual value arrived at as above, less 30% (maintenance charges) and IS FURTHER REDUCED by the amount of Housing Loan interest. Hence your Income from House Property could be NEGATIVE if you had paid housing loan interest.

This negative amount is ‘added’ to your total income (which includes your Salary income) thus essentially reducing your total income by the amount of Housing loan interest paid by you (This is the Sec 24). HOWEVER Sec 24 limits the amount of deduction to Rs.1,50,000/- (Rs. 30,000 if property was build before 1st April 1999).
Sec 24: http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2007ITAct/section24.htm

I am NOT a Tax consultant , but have been paying (and researching) the IT Act for years and years now.

Moreover, When you are claiming house rent loan deduction, you are specifically mentioning that you are not claiming HRA deductions. So anyone doing both is potentially liable for criminal prosecution!

For details (from the horses mouth) go to http://law.incometaxindia.gov.in/TaxmannDit/Displaypage/dpage1.aspx?md=2&typ=cn&yr=2007&chp=37

If what you say is true - pls let me know who does this - I will reward you (and get benefitted myself)

XYZ,
maybe. that adutiting each and every tax return is well nigh impossible me thinks.

Gopi,
Its all relative to the standards you keep da. What’s your devil’s cap may still be better than sombody’s divine cap :).
And that standard is evolving day by day for each invididual in each aspect of life.

Enga team laye naan dhaan highest tax payer, getting the same exact salary as everyone

That should give you an idea

And i don’t even claim i have been 100% absolute honesty personified guy in the past on tax issues…ellarum panraanga naanum pannaren nu idhu madhiri vera sila velaigal pannirukken..

Aana indha alavuku ella tax provisions um use panni chartered accountants ke thanni kaatraanga makkal..

Having said that our tax provisions motivates you to be like that.
How long will it take for the law to be amended to say, the exemption limit will be increased from 1,50,000 by only the actual rent received?

seri salaried class indha alavuku dhaan panna mudiyum nu poga vendiyadhu dhaan!

Another thinking i have in this point is, this is rampant among otherwise very decent folks. So, either they are disillusioned with the system
or
Tax evasion in india does not start from the high ncome earning business men or politicans. Almost everyone will cheat if given an option.

Namba DNA laye ‘greater common good’ factor ellam illai nu ninaikiren.