The Hindu Business Line : Housing loan

Due to reasons of employment I am constrained to stay in Bangalore. My parents and brothers are staying at my house at Cochin. Will it be possible for me to claim the interest on housing loan and the principal repayment thereof as a deduction though I am not staying in that house physically? Please note that the house is purchased in my name and that I pay the EMI.

Krishnamoorthi

Reply

Whether a property is self-occupied or let out or is deemed as let out, interest on capital borrowed for the purchase of the same could be claimed as deduction. The principal repayment will also qualify for deduction under Section 80C. It is only that if a property is self-occupied the deduction in respect of interest will be subject to a ceiling limit. Your question should, therefore, be on whether such property which is occupied by your parents and brothers can be treated as self occupied in which case the annual value will be taken as nil. A property can be treated as self-occupied if:

It is in the occupation of the owner for the purpose of his own residence or;

Cannot actually be occupied by the owner owing to his employment, business or profession being carried on at any other place, he has to reside at that other place, in a building not belonging to him;

Even in a case where the property is occupied by your parents and brothers and where you are not able to occupy due to your employment being in a different place, the annual value can still be taken as nil provided you are not deriving any benefit from the property and further provided that this is the only house owned by you.

Mail your queries to taxtalk@thehindu.co.in or by post to Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002.

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