Is it true? loss from house property can’t be set off against income from salaries if it is not self occupied?



One of the income tax consultatants has advised me that the loss from house property can not be set off against the income from salaries if it is rented out. He says this provison has been with drawn in 2007 – 08. He says if the property is rented out, the loss arising out of it can be set off only against income from other sources if any & not against income from salaries as i will be claiming HRA exemption for the house i have taken on rent for my stay.

Is it true? loss from house property can’t be set off against income from salaries if it is not self occupied?
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4 Replies to “Is it true? loss from house property can’t be set off against income from salaries if it is not self occupied?”


  1. I found the following information from two web sites. One is Income Tax-Banglore showing date as 13th April,2008 and the other is Financial times dated 6th April, 2008. They say the loss from house property can be set off againest salary income. You can take the printout of the web pages and show it to your C.A (auditor). Let him decide.

    You can set off the loss from “Income from house property” with salary income. If the TDS has not yet done, see that the TDS is reduced to the extent of loss. If the TDS has already been done, then you have to claim it back showing the loss from house property.

    Q4. If there is a loss under the head ‘Income from House Property’, can it be adjusted against other income?

    Ans : Yes, any loss under the head ‘Income from House Property’ can be adjusted against income under any head in the same year.

    http://www.incometaxbangalore.org/faq/houseproperty.htm

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    In case there is still some income after these deductions, it is taxed under the head ‘Income from House Property’. However, in case the net result is a loss, special treatment is allowed for set-off and carry forward of such loss from the house. According to Section 71B of the Income Tax Act, where an assessee incurs a loss under the head ‘Income from House Property’, the loss should be first set-off against the income from other heads i.e. income from salaries, business, profession, and other sources.

    http://www1.economictimes.indiatimes.com/Features/Financial_Times/Tax_deduction_on_loss_from_property/articleshow/2929488.cms



  2. loss from house property can be set off against salary income whether it is let out or self occupied.

    Loss from business head only cannot be set against salary income.





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