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Business News/ Money / Ask Mint | Few expenses on house deductible
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Ask Mint | Few expenses on house deductible

Ask Mint | Few expenses on house deductible

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—Sridhar Nair

You will need your lender’s approval for gifting 50% of the property to your wife, or re-registering the property in her name. The approval should not be a problem as she is a co-applicant to the home loan. Whether you gift or sell a part of the property, it will have stamp duty implications. If you gift the property, it will not serve any benefit under the Income-tax Act as income from an asset gifted to the spouse will be taxed in your hands.

I have claimed deduction of home loan interest of Rs1.5 lakh for three years. Now I want to sell the property and pre-pay the loan. How will this affect the deduction claimed for three years. How can I minimize my tax burden in this scenario?

—Navneet

The sale of your property will have no effect on the deduction claimed by you in the previous years for interest payable on a home loan taken to acquire that property. This is irrespective of the period for which property is held.

—Aslam Jafar

There are three types of expenses allowed to be deducted while computing income from house property. These are municipal tax, standard deduction (30% of rent minus municipal tax) and interest paid or payable on the home loan. No other expenses can be deducted from house property income.

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Published: 05 May 2010, 10:27 PM IST
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