In income tax rules, what is the “loss on let out property”? ?



According to Indian income tax rules, what is called as loss on let out property. Is there any basis for declaring it and claiming the same.
Thanks VKB. Just trying to add more clarity to my question.

Assuming, the individual pays some amount for maintaining the house (for general maintaince, repairs, power, water, coloring etc), is that amount is treated as loss on let out property.

If the property is not letout for some time but the maintaince amount is spent, then can it be claimed as well?

In income tax rules, what is the “loss on let out property”? ?
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2 Replies to “In income tax rules, what is the “loss on let out property”? ?”

  1. When any individual purchases a premises on getting loan from bank or financial institution. The interest and other maint. exp. of the premises are his/her expenses. And supposing he/she has rented (let out as said by you) the premises.

    Now if Interest amount exceeds the rent received then it is called ‘ loss on let out property’ as per Income Tax Act way. Though the market price of the property may have increased.

    Any individual can claim the loss by setting it for next years by declaring in annual Return of Income Tax. There is no seperate declaration but one have to fill up the relevant columns of Return of Income Tax.

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  2. ‘Income from House Property’

    •A person is liable to declare Income from House Property when he owns two houses in his name.
    •Since the second house is treated as being rented out (notional rent) for income tax purposes, the deduction for interest is not limited to Rs 1,50,000 in respect of the loan taken for this house.
    •The entire principal paid on both the loans will be eligible for deduction under Section 80C, subject to the overall cap of Rs 1,00,000.
    •When you own two houses, you may also be liable to pay wealth tax if the net value of the house (net of the loan), along with other assets chargeable to wealth tax exceeds Rs 15 lakh .

    As for loss, municipal taxes paid are eligible for deduction.
    Also you can claim 30% of income as standard deduction .
    Expenditure is not loss.





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