vacant 2nd house

I have booked a flat in July 2010 and possession was taken in Feb 2014 as my 2nd house. I reside in my 1st house in the same city. Now this flat (2nd house) is vacant as some works like wood work almiras and kitchen essential are to be fixed. I have taken home loan. What will be the Income tax calculations.

asked Jul 17 '14 at 17:36 by ANIL JAIN 1124


You will have to show a notional rent on second house and then you can claim full home loan interest without any limit.

answered Jul 18 '14 at 11:52 by Pankaj Batra 5.2k320

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Sir, Notional rent for Feb2014 to March2014 or for the whole year 2013-2014. As the possession of the flat was given to me in Feb2014 and the registry was done in Jan2014. Please clarify.
(Jul 20 '14 at 19:33) ANIL JAIN
You can show notional rent only for Feb, March 2014 as rent cannot be received before possession.
(Jul 20 '14 at 22:41) Pankaj Batra
where to get notional rent? for example in marunje village (Hinjewadi) in Pune, Maharashtra.
(Jul 23 '14 at 16:35) akshay jain
There is no strict rule for it. You should use ongoing average rent for similar property in that area.
(Jul 23 '14 at 16:37) Pankaj Batra
suppose ongoing rent for similar property is 10000 per month, however i have rent agreement of 7000 per month , will that be considered?
(Jul 23 '14 at 16:49) akshay jain
It would be considered, but if IT department calls you for scrutiny, you will have to explain why rent is kept low.
(Jul 23 '14 at 17:07) Pankaj Batra
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Asked: Jul 17 '14 at 17:36

Seen: 1,756 times

Last updated: Jul 23 '14 at 17:07