I had purchased a house by availing a bank loan. The property is let out as I live in a different city. I am claiming loss on house property after taking rent into consideration.
Now, my wife wants to purchase a house in her name by availing a bank loan for which I am a co-obligant. She wants to take Rs 25 lakh loan. As this property is also in a different city, we are planning to let out the same. What is the limit for interest on this loan after taking rent into consideration according to the financial year 2013-14 budget proposal?
— Srihari
According to section 24 of the Income-tax Act, 1961, in case of a let out property, actual interest payable is allowed as a deduction while computing income under the head ‘House Property’. In respect of the additional deduction u/s 80EE proposed in the Budget proposal for FY 2013-14 for interest on home loan, one of the conditions is that it is available for the house which is self occupied property. Hence, the deduction under this section shall not be available to your wife as she intends to let out the new house.
For the last three years (FY 2009-10, FY 2010-11 and FY 2011-12), I have been filing I-T returns and paying income tax as applicable. Recently, I came to know that those earning income from let out property can avail standard deduction of 30 per cent, which I have not claimed in my tax returns. Is there any way I can file revised I-T return for last three years and get refund for the extra tax I had paid by not claiming the standard deduction of 30 per cent?
— Col P M Singh
According to section 139(5) of the Income-tax Act, 1961, an assessee may furnish a revised return, if he discovers any omission or any wrong statement in the original tax return, filed by him within the due date of filing of the original return. The due date of filing such revised return is one year from the end of the relevant assessment year or before the completion of the assessment of the original return, whichever is earlier. Thus, in your case you may revise your original tax return for the FY 2011-12 to claim the standard deduction of 30 per cent while computing income under the head ‘House Property’. The due date of filing the revised return for FY 2011-12 is March 31, 2014, provided the assessment of the original return is not completed in the meantime. Please note that you cannot revise your tax returns for FY 2009-10 and FY 2010-11 as the due dates of filing the revised returns were March 31, 2012 and March 31, 2013, respectively.
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