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Hi, First of all, let me convey my gratitude and appreciation for the effort that you have put in for making such a beautiful and valuable website. My question is I have availed a home loan from a bank and am paying an interest of around 4lcs per annum and have also borrowed some money from my relatives and am paying interest to them also (the amount borrowed from them is for purchasing the house). Now the property that i have purchased is in a different city than that of I live and is rented out. The property is on both me and my wife's name (my wife is an home maker) and the rent is paid to my wife. I pay the EMI and interest towards the amount borrowed from relatives. Now I have the following questions 1. Can I avail both HRA exemption and exemption on interest paid to the bank and to the relatives? 2. Since I am not getting any rent (my wife gets the rent), the rent received need not be reflected in my taxable income? 3. Is there a limit for the amount to be borrowed from relatives? 4. Is there a limit for availing exemption from Income tax towards the money paid as interest to relatives or friends? Would be glad to receive your clarifications on the questions above. Thanks, Sridhar asked Apr 10 '13 at 13:42 by Sridhar 1●1●1 |
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As property is not self occupied, you will have to show a notional rent in your income, even if you are not receiving rental for same. Home loan interest would only be deductible against the rental income shown. There is no limit on amount received from relatives as loan and also no limit on exemption for loan taken from them. Loan taken from bank as well as relatives both are equal u/s 24. answered Apr 11 '13 at 18:17 by Pankaj Batra 5.2k●3●20 |