How to make an income tax declaration?- Property Hotline

Expert: Vinay Singh, Legal and Tax Expert.

Question: I availed loan of Rs 75 lakh for under construction flat at Goregaon East in December'12. Got possession for the same in September'16.I did not avail interest exemption from FY 12 to FY 16 as possession was due. Now, I have got the possession and flat is also rented out from Nov16 onwards for which agreement has been registered as well. Total interest from FY 12-FY16 is Rs 15,33,500 which can be availed in five equal instalments I.e. Rs 3,06,701 from this financial year onwards in addition to my current FY 16-17 interest of Rs 4,40,000/-. Please clarify can these adjustments for Rs 3,06,701 for previous years and Rs 4,40,000 for this FY 16-17 be done in the Form 16 itself u/s 197 after adding rental income of Rs 3,00,000 if I provide requisite interest certificate issued by SBI to my employer and also furnish lease rental agreement which proves it is not a self-occupied property? Secondly what if my employer does not consider rental income and provides deduction of only Rs 2,00,000 which is applicable for self-occupied property then In that case can I claim the differential of (Rs 4,40,000 – Rs 2,00,000 )I.e. Rs 2,40,000 while filing my IT return? Or should I ask my employer not to adjust deduction of Rs 2,00,000 deduction for self-occupied property and claim entire deduction while filing of my IT return, as it will be a wrong declaration and later I will not be able to claim differential of Rs 2,40,000 as well?

Answer: Since it’s rented there is no problem in claiming the interest element. To make an income tax declaration compute net income from rent and interest claims to deduct tax. Claim rental income whilst filing returns. If Rs 2 lakh is allowed, claim the balance.

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