Husband, wife can’t claim to self-occupy different properties for tax purposes


Assuming both would be residing in the same house, each of you cannot claim to be occupying a different property for tax purposes.

l My wife and I are joint owners of two flats. Can we both show each flat as self-occupied separately and file returns accordingly?
– M K Singh
Only one property can be declared as self-occupied house property by the joint owners which are occupied by them and all other properties shall be deemed to be let-out for the purpose of computation of income under the head ‘house property’. In your case assuming both of you would be residing in the same house, each of you cannot claim to be occupying a different property for tax purposes. However, if the owner of the property is residing at any other property, not belonging to him, due to reason of employment, then such other joint owner has an option to treat any one of the properties as self-occupied. But if this is not the fact in your case, it is not advisable to present wrong facts in the ITR.

l I got a notice for defective returns, which I rectified and filed again. Two weeks back I got another notice of defective returns. What should I do?
—Pritpal Verma
Need to first understand the reason why such notices for defective return are being issued. Any curative action or refiling of return may be advised only after understanding such reason. If such defect cannot be rectified for any reason beyond the control of assessee, then the necessary application may be required to be made to concerned tax authorities explaining the difficulty and request them to consider the return as ‘valid return’. The help of a professional chartered accountant or tax practitioner may be taken in such matters.

l I plan to prepay the full amount of my housing loan. Will I get any tax benefit?
—VR Kundappa
Prepayment of home loan does not entail any specific benefits whereas benefit on repayment of home loan is provided. However, these benefits differ based on the timing of repayment of the loan, i.e., paid before or after the property is acquired. If repayment is made after acquisition/ construction, the total amount of principal paid in a financial year can be claimed as a deduction from gross total income under Section 80C before calculating net taxable income. Interest payment can be claimed as deduction under Section 24, up to `2 lakh for the self-occupied property provided construction gets completed within five years from the end of the financial year when the property was purchased/ constructed.

Courtesy: Financial Express