I have 02 flats bought on loan with combine EMI of Rs 40000/-. Presently , I have had a total rental income on both as Rs 172000/- for 2010-11. How do I fill my return and how much rebate on housing loan I will get.
1 Answers
You will have to file ITR2 in order to show income from home property and to claim home loan interest benefit. Read more here about Filing income tax return online.
Only 70% of the rental income is taxable as per current law as 30% is deducted towards maintenance and other expenses.
There is no upper limit on home loan interest deduction, in case the properties is let-out. You will get rebate for whole interest paid during the year. Please check your home loan yearly account statement for interest component.
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