Investment in house property: Income tax issues & opportunities
Can my wife and I jointly claim tax benefits on the same property?
Yes, both you and your wife can claim deduction of interest paid on home loan. In case of a self-occupied house property, both husband and wife can claim up to R1,50,000 each, thereby resulting in considerable reduction in your taxable business/salary income.
If we shift to another city, can my wife claim HRA in addition to the interest benefit?
Since your parents will continue to stay at the existing property, it is possible for your wife to claim HRA in addition to the interest deduction.
If I sell the property, can I claim interest as deduction from my sale value?
A recent ruling has confirmed that interest paid on house property is considered as amount incurred for purchasing the property and, accordingly, can be claimed as deduction from the sale value for computing capital gains. In addition to deduction from business/salary income, it can be reduced from the sale value.
Is there any tax benefit on the stamp duty paid and repayment of principal amount of home loan?
Stamp duty, registration