I have taken a house loan. I have started paying the EMI as well. I wanted to know for Tax exemption should the House be ON RENT compulsorily? or if the HOUSE is empty and is it possible to still claim the exemption on the interest?
Dear friend, if the house in question is ur first/only house u need not to show any deemed rent (if house is vacant) show rent only if u r actually receiving any. U r eligible to claim interest benefit for a max. of 1.5L Rs. under Section 24 of IT Act.
In case this is ur second house but house is vacant u w`d have to show deemed rent or if the house is on rent, the actual rent. In both cases, the rent `ll be added to ur income under the head income from house property but in this case u may claim deduction from rental income @ 30% for maint. of house & all the interest paid (no limit of 1.5L Rs. as in first case, so u can full amount of interest if it`s more than 1.5L Rs.) on home loan in the FY with out any limit.
If the rental income is still positive it`ll be added to ur income from all other sources but in case the above income is negative, u can set it off againt ur salary income.
| NIFTY 
