Say i have a property in a city. I prefer to give it out on rent and claim Income Tax deduction on the recieved rent while myself staying in a separate rented property and claiming HRA. Can this be done ?
Hey @S_Shankar
Yes, this is permitted. You can report the rent received from your owned property as income under “Income from House Property” and claim HRA exemption for the rent you pay for your current residence. However, if the rent you pay exceeds ₹50,000 per month, ensure that you deduct TDS at 2% as required under Section 194-IB.
Hope this helps!