1. How to set off loss of income from house property; Find out in brief

How to set off loss of income from house property; Find out in brief

As per Finance Act, 2017, the set-off of loss under the head income from house property against any other head of income is restricted to Rs 2 lakh.

By: | Updated: July 10, 2017 2:24 PM
The limit of Rs 2 lakh is applicable irrespective of the nature of house property (i.e. whether self-occupied or let out or deemed to be let out). (Reuters)

I have let out my residential flat in Thane. Currently, I am paying interest and principal on loan which was taken for purchasing that flat. Is the set-off of loss of up to Rs 2 lakh against any other income like salary applicable only for self-occupied property or is it applicable for let out property?

– Jagdish Shetty

As per Finance Act, 2017, the set-off of loss under the head income from house property against any other head of income is restricted to Rs 2 lakh. The limit of Rs 2 lakh is applicable irrespective of the nature of house property (i.e. whether self-occupied or let out or deemed to be let out). However, the aforesaid restriction of Rs 2 lakh is not applicable at the time of set off of losses in relation to one house property against income from another house property. Further, it is also not applicable while adjusting the brought forward loss against income from house property in subsequent years.

I bought my flat in 1995 and now wish to sell it and buy a flat in Surat. I came to know that there is a change in the manner of indexing cost of acquisition. What are the changes?

—Gurdeep Singh

As per the recent amendment in income tax law, the base year for calculating indexed cost of acquisition has been shifted from 1981 to 2001. Further, the cost inflation index for the FY 2017-18 has been notified as 272. Also, for any asset acquired before April 1, 2001, the cost of acquisition shall be taken as actual cost of asset or fair market value as on April 1, 2001 ,whichever is higher.

My employer deducted excess TDS on salary income. Is there any provision whereby employer can refund it?

— Rajan Mathai

An employer can adjust tax deducted during the financial year. However, if for any reason, at the year end, there is some excess tax deducted by the employer, then there is no provision in the I-T Act whereby employer can refund it. In such a case, the employee will be required to file his return of income and claim the excess tax deducted as refund from income tax department.

The writer is founder of RSM Astute Consulting Group. Send your queries to fepersonalfinance@expressindia.com

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