in respect of interest paid is available only in a case where loan has been utilised for the purpose of acquisition or construction of house property. However, the said deduction is not applicable where loan has been used for repairs of the house. If the loan is borrowed for repairs or renewal of a house property, then maximum deduction on account of interest is R30,000. Thus, you will be eligible for deduction of R30,000 only.
I have brought forward loss under the head house property. Next month, I am planning to sell some units of mutual funds on which I will have some capital gain. Will I able to set off the brought forward loss of house property against the capital gain on sale of units of mutual funds?
— DK Gopalan
The brought forward loss under the head ‘Income from house property’ can not be set off against any income except under the head income from house property. As such, you will not be able to set off the brought forward loss of house property against capital gain on sale of units of mutual funds.
My query is regarding leave travel concession (LTC). I wish to know whether I can claim the exemption in respect of travel expense incurred by my brother.
— PS Raghavan
The definition of ‘family’ for the purpose of LTC includes brothers who are wholly or mainly dependent on the individual. The exemption is not available if the family members are traveling separately without the employee who is not on leave. Also, the exemption is limited to the actual expenses incurred on the journey (which is strictly limited to expenses on air fare, rail fare and bus fare only). Thus, you can claim the exemption limited to the actual expenses incurred on the journey subject to the fact that your brother is wholly dependent on you.
The writer is founder of RSM Astute Consulting Group
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