Assuming that the plot size is 3,750 sq m, the permitted floor area under the revised bye-laws notified in November 1998 stands increased from 3,362.50 sq m to 4,999.87 sq m. Furthermore, the FAR in Group Housing Schemes has been increased from 1.33 to 1.67 with permissible height of 33 meters. Your understanding about the societies having been permitted additional FAR up to 400 sq m for building a community hall, recreation hall, creche, library, reading room and society office is also correct.

Since the land is owned by your co-operative society, the society alone is competent to build further upon it with prior approval of construction drawings from the MCD/ NDMC. In case the existing members wish to utilise a part of theadditional FSI now available under the revised bye-laws, they will have to secure prior permission from the Society which in turn will also have to secure requisite approvals from the MCD/NDMC prior to the commencement of additional construction activity. As any glazing of balconies/ verandahs is likely to affect the facade of the building, the society may also have to secure a fresh clearance.

The amended notification specifically permits construction of community/ society office buildings etc. within the overall built-up area of 400 sq m on the ground floor and such construction shall have to be within the overall plot coverage of 33.33 per cent. In the event the existing coverage is less than 33.33 per cent, the society can seek permission of the MCD/NDMC to undertake additional ground coverage for the development of community building or any other permitted construction and upon receipt of this approval, they would be within their rights to undertake such construction even if it leads to utilisation ofthe existing open areas for the purpose.

Whether the Society must sell the additional flats to their existing members including those on the waiting list, they will have to be guided by the subsisting provisions of their bye-laws. However, if the subsisting waiting list is inadequate and new members need to be enrolled, the Society can do so only with prior permission of the Registrar of Co-operative Societies. At present, additional enrollment of members in the existing co-operative societies without specific approval from the registrar is not permitted.

My wife is employed with an MNC in Calcutta and is an income tax assessee. While she's living in the ancestral home which she has inherited from her parents, she has also acquired a house in South Delhi by borrowing Rs 5 lakh from HDFC in 1998. However, the Delhi house is lying vacant and is subject to levy of property tax that is calculated on an annual letting value of Rs 68,000. The property tax paid for the year 1998-99 after availing promptpayment rebate was Rs 10,080. Considering the limitations imposed by Section 23 of the Income Tax Act, would it be advisable to show the property as rented property at the national letting value fixed by the MCD or else show it as self-occupied property and claim rebates in respect of interest paid to HDFC and a deduction under Section 88 of the Income Tax Act?
--Deshbandhu Sirkar, NEW DELHI

If you show the property as let at the national letting value of Rs 68,000 per annum, the national rent received by you after payment of property tax of Rs 10,080 will be Rs 57,920 on which you will be entitled to claim a standard deduction of 25 per cent i.e. Rs 14,480 and the interest paid by you to the HDFC which for the previous financial year i.e. Rs 75,000. Your wife will have made a loss of Rs 31,560 which she can legally deduct from her salary income for the year.

If your wife decides to show the Delhi property as a self-occupied house, she would lose any deductions that she would otherwise be claimingin respect of the Calcutta property that she's actually occupying because as per provisions of Section 23 of the Income Tax Act, she can claim deductions in respect of self-occupied property for one house only. But she would be able to claim deduction of interest subject to a ceiling of Rs 30,000 per annum and a further deduction of Rs 10,000 per annum on account of principal loan repayment under Section 88 of the IT Act. You can now decide the best modality.

My wife and I are income tax assessees with independent business incomes and are assessed to income tax by different assessing officers at Delhi and New Delhi, respectively. We jointly secured a loan of Rs 10 lakh from ANZ Grindlays Bank for purchase of a residential apartment which we are occupying ourselves. Our EMI is Rs 15,400. We have arranged to effect this payment through issue of post-dated cheques for the first 36 months of loan repayment from our individual accounts for Rs 7,700 each. As the loan carries an interest on descending balancesat the rate of 16 per cent per annum, our first year's payments are likely to be treated as interest payment -- approximately Rs 1,54,800 and principal repayment Rs 30,000. Please confirm that both of us are entitled to claim tax deduction on account of interest paid to bank and also the principal loan repayment account.
--Vipul Gandhi, DELHI

Presumably, your query relates to admissibility of deductions under Section 24 and Section 88 of the IT Act. As long as your individual share in the joint house property is definite, the IT assessing authority should have no problem in allowing deduction to the maximum extent of Rs 30,000 to each one of you on account of the interest paid by you to the bank to service the loan under Section 24 of the IT Act. Similarly, each one of you will also be able to claim a deduction of Rs 10,000 under Section 88 towards repayment of principal loan amount. Presumably, the bank is issuing separate payment receipts each month against each post-dated cheque issued by eitherof you.

If this is not being done, ask them to issue a certificate of payment receipts for the previous period and request that individual receipts be issued along with the payment appropriation advise in your individual names.You should also enter into an agreement or an MoU on stamp paper laying down your respective investment and share in the property as I believe that this document would be of help in establishing your respective definite and ascertainable interest in the joint house property.