I have a joint home loan with my father. Can I take another joint loan with my husband? Will I get tax exemption on both?
The tax law does not restrict the number of housing loans or joint housing loans for an individual. Of course, if you own more houses, you also have to pay taxes on the rent earned. Even if not rented out, you are required to pay tax on the notional rent. You will be able to claim interest as a deduction from the income taxable under the head 'income from house property', provided you are a co-owner. Where the house is self-occupied, the deduction on account of interest is limited to Rs 200,000 a year, provided the loan is taken on or after April 1, 1999, and the construction is completed within three years. Otherwise, the interest deduction will be limited to Rs 30,000 against the self-occupied property.
My father recently sold land in the village and wants to use the money to buy property in the city. Will he get long-term capital gains exemption?
Tax laws exclude agricultural land in a rural area from the definition of capital assets and no capital gains arise on its sale. If an area falls under the jurisdiction of a municipality or cantonment board having a population of 10,000 or less. An area outside the jurisdiction of a municipality or cantonment board with a population of 10,000 or more is also considered rural, if it does not fall within the prescribed distance from such a municipality.
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Today, partner and leader (personal tax), PwC India, Kuldip Kumar answers your questions
