Article explains Rental income from sub-letting chargeable to tax under the head Income from house property, Tax on rental income cin the hands of a person who is not a registered owner of the property, Tax on rental income from a shop, Tax treatment of composite rent for Services, House Property and Other Capital Assets, gross annual value in the case of a property which is vacant for some time during the year, expenses to be deducted from gross annual value,deduction of paid on loans taken from friends and relatives while calculating house property income, deduction of interest on housing loan with limit on deduction, pre-construction period interest, How to compute income from self occupied property, Rental Income from house Property Jointly owned, tax implications if a person occupies more than one property for his residence, How to compute income from a property, when part of the property is self-occupied and part is let-out, What is the tax of treatment of unrealised rent which is subsequently realised etc.
Q.1 Is rental income from sub-letting chargeable to tax under the head “Income from house property”?
Ans. Rental income in the hands of owner is charged to tax under the head “Income from house property”. Rental income of a person other than the owner cannot be charged to tax under the head “Income from house property”. Hence, rental income received by a tenant from sub-letting cannot be charged to tax under the head “Income from house property”. Such income is taxable under the head “Income from other sources” or profits and gains from business or profession, as the case may be.
Q.2 Whether rental income could be charged to tax in the hands of a person who is not a registered owner of the property?
Ans. Rental income from property is charged to tax under the head “Income from house property in the hands of the owner of the property”. If a person receiving the rent is not the owner of the property, then rental income is not charged to tax under the head “Income from house property” (E.g. Rent received by tenant from sub-letting). In the following cases a person may not be the registered owner of the property, but he will be treated as the owner (i.e., deemed owner) of the property and rental income from property will be charged to tax in his hands:
(1) If an individual transfers his or her house property to his/her spouse (not being a transfer in connection with an agreement to live apart) or to his/her minor child (not being married daughter) without adequate consideration, then the transferor will be deemed as owner of the property.
(2) Holder of impartible estate is deemed as the owner of the property comprised in the estate
(3) A member of co-operative society, company or other association of persons to whom a building (or part of it) is allotted or leased under house building scheme of the society, company or association, as the case may be, is treated as deemed owner of the property.
(4) A person acquiring property by satisfying the conditions of section 53A of the Transfer of Property Act, will be treated as deemed owner (although he may not be the registered owner). Section 53A of said Act prescribes following conditions:
(a) There must be an agreement in writing.
(b) The purchase consideration is paid or the purchaser is willing to pay it.
(c) Purchaser has taken the possession of the property in pursuance of the agreement.
(5) In case of lease of a property for a period exceeding 12 years (whether originally fixed or provision for extension exists), lessee is deemed to be the owner of the property. However, any right by way of lease from month-to-month or for a period not exceeding one year is not covered by this provision.
Q.3 Under which head is the rental income from a shop charged to tax?
Ans. To tax the rental income under the head “Income from house property”, the rented property should be building or land appurtenant thereto. Shop being a building, rental income will be charged to tax under the head “Income from house property”.
Q.4 What is the tax treatment of composite rent when the composite rent pertains to letting of building along with other assets?
Ans. Composite rent includes rent of building and rent towards other assets or facilities. The tax treatment of composite rent is as follows:-
(a) In a case where letting out of building and letting out of other assets are inseparable (i.e., both the lettings are composite and not separable, e.g., letting of equipped theatre), entire rent (i.e. composite rent) will be charged to tax under the head “Profits and gains of business and profession” or “Income from other sources”, as the case may be. Nothing is charged to tax under the head “Income from house property”..
(b) In a case where, letting out of building and letting out of other assets are separable (i.e., both the lettings are separable, e.g., letting out of refrigerator along with residential bungalow), rent of building will be charged to tax under the head “Income from house property” and rent of other assets will be charged to tax under the head “Profits and gains of business and profession” or “Income from other sources”, as the case may be. This rule is applicable, even if the owner receives composite rent for both the lettings. In other words, in such a case, the composite rent is to be allocated for letting out of building and for letting of other assets.
Q.5 What is the tax treatment of composite rent when the composite rent pertains to letting out of building along with charges for provision of services?
Ans. In such a case, composite rent includes rent of building and charges for different services (like lift, watchman, water supply, etc.): In this situation, the composite rent is to be bifurcated and the sum attributable to the use of property will be charged to tax under the head “Income from house property” and charges for various services will be charged to tax under the head “Profits and gains of business and profession” or “Income from other sources” (as the case may be).
Q.6 How to compute income from a property which is let out throughout the year?
Ans. Income chargeable to tax under the head “Income from house property” in the case of a let-out property is computed in the following manner:
| Particulars | Amount |
| Gross annual value | XXXX |
| Less:- Municipal taxes paid during the year | XXXX |
| Net Annual Value (NAV) | XXXX |
| Less:- Deduction under section 24 | |
| ➣Deduction under section 24(a)) at 30% of NAV
➣Deduction under section 24(b)) on account of interest on borrowed capital |
(XXXX)
(XXXX) |
| Income from house property | XXXX |
Q.7 How to compute gross annual value of a property which is let-out throughout the year?
Ans. Gross annual value of a property which is let-out throughout the year is determined in the following manner :
Step 1: Compute reasonable expected rent of the property (for details refer to FAQ on computation of reasonable expected rent).
Step 2: Compute actual rent of the property (for details refer to FAQ on computation of actual rent).
Step 3: Compute gross annual value (Gross annual value will be higher of amount computed at step 1 or step 2).
Q.8 How to compute reasonable expected rent while computing gross annual value of a property which is let-out throughout the year. ?
Ans. Reasonable expected rent will be higher of the following:
Municipal value of the property (Note 1); or
Fair rent of the property (Note 2).
If a property is covered under Rent Control Act, then the reasonable expected rent cannot exceed standard rent (Note 3).
Note 1: Meaning of Municipal Value
For collection of municipal taxes, local authorities make periodic survey of all buildings in their jurisdiction. Such value determined by the municipal authorities in respect of a property, is called as municipal value of the property.
Note 2: Meaning of Fair Rent
It is the reasonable expected rent which the property can fetch. It can be determined on the basis of rent fetched by a similar property in the same or similar locality.
Note 3: Meaning of Standard Rent
It is the maximum rent which a person can legally recover from his tenant under the Rent Control Act. Standard rent is applicable only in case of properties covered under Rent Control Act.
Q.9 How to compute actual rent while computing gross annual value of a property which is let-out throughout the year?
Ans. Actual rent means the rent for which the property is let out during the year. While computing actual rent, rent pertaining to vacancy period is not to be deducted. However, unrealised rent (*) is to be deducted from actual rent if conditions specified in this regard are satisfied.
(*) Unrealised rent is the rent of the property which the owner of the property could not recover from the tenant, i.e., rent not paid by the tenant. If following conditions are satisfied, then unrealised rent is to be deducted from actual rent of the year:
> The tenancy is bona fide.
> The defaulting tenant has vacated the property, or steps have been taken to compel him to vacate the property.
> The defaulting tenant is not in occupation of any other property of the taxpayer.
> The taxpayer has taken all steps to recover such amount, including legal proceedings or he satisfies the Assessing Officer that legal proceedings would be useless.
Q.10 How to compute gross annual value of a property which is let-out throughout the year?
Ans. The steps involved in computation of gross annual value of a property which is let-out throughout the year are already discussed earlier, hence, we will take an illustration for better understanding.
Illustration
From the following information provided by Mr. Raja in respect of 3 properties rented out by him compute the gross annual value of all the properties.
| Particulars | Property A (Rs.) | Property B (Rs.) | Property C (Rs.) |
| Municipal Value | 8,48,484 | 8,48,484 | 2,52,252 |
| Fair Rent | 2,52,252 | 2,52,252 | 8,48,484 |
| Standard Rent | Not Applicable | 84,252 | 9,84,000 |
| Actual rent for the entire year | 9,60,000 | 60,000 | 9,60,000 |
| Unrealised rent (*) | 1,60,000 | NIL | 80,000 |
(*) All the conditions specified for deduction of unrealised rent are satisfied.
**
Gross annual value will be computed as follows:
Step 1: Compute reasonable expected rent of the property.
Step 2: Compute actual rent of the property.
Step 3: Compute gross annual value.
Based on these steps the computation will be as follows
| Particulars | Property A (Rs.) | Property B (Rs.) | Property C (Rs.) |
| Amount at Step 1 (Note 1) | 8,48,484 | 84,252 | 8,48,484 |
| Amount at Step 2 (Note 2) | 8,00,000 | 60,000 | 8,80,000 |
| Amount at Step 3, i.e., Gross annual value (Note 3) | 8,48,484 | 84,252 | 8,80,000 |
Note 1: Amount at Step 1 (,i.e., Reasonable expected rent) is higher of municipal value or fair rent (subject to standard rent).
Note 2: Amount at Step 2 is actual rent after deducting unrealised rent., i.e., Rs. 8,00,000 (9,60,000 – Rs. 1,60,000) in case of property A, Rs. 60,000 in case of property B and Rs. 8,80,000 (Rs. 9,60,000 – Rs. 80,000) in case of property C.
Note 3: Gross annual value will be higher of amount at Step 1 or Step 2.
Q.11 How to compute the gross annual value in the case of a property which is vacant for some time during the year?
Ans. Where the property or any part of the property is let and was vacant during the whole or any part of the previous year and owing to such vacancy the actual rent received or receivable by the owner in respect thereof is less than the reasonable expected rent than the actual rent so received or receivable (as reduced by the vacant allowance) shall be considered to be the Gross Annual Value of the property.
Q.12 While computing income chargeable to tax under the head “Income from house property” in the case of a let-out property, what are the expenses to be deducted from gross annual value?
Ans. While computing income chargeable to tax under the head “Income from house property” in the case of a let-out property, only following items can be claimed as deductions from gross annual value. In other words, deduction cannot be claimed for any expenditure incurred by the taxpayer other than following:
- Deduction on account of municipal taxes paid by the taxpayer during the year (*).
- Deduction under section 24(a)@ 30% of Net Annual Value.
- Deduction under section 24(b) on account of interest on capital borrowed for the purpose of purchase, construction, repair, renewal or reconstruction of the property.
(*) Only municipal taxes paid by the owner during the year can be deduced, hence, municipal taxes due but not paid during the year cannot be deducted or taxes borne by the tenant cannot be deducted.
Q.13 Can interest paid on loans taken from friends and relatives be claimed as deduction while calculating house property income?
Ans. Yes, if the loan is taken for purchase, construction, repair, renewal or reconstruction of the house. If the loan is taken for personal or other purposes then the interest on such loan cannot be claimed as deduction.
Q.14 While computing income chargeable to tax under the head “Income from house property” in the case of a let-out property, how much interest on housing loan can be claimed as deduction?
Ans. While computing income chargeable to tax under the head “Income from house property” in case of a let-out property, the taxpayer can claim deduction under section 24(b) on account of interest on loan taken for the purpose of purchase, construction, repair, renewal or reconstruction of the property.
In case of a let-out property, there is no limit on the quantum of interest which can be claimed as deduction under section 24(b). However, in case of a self occupied property, limit is Rs. 2,00,000 or Rs. 30,000, as the case may be.
Q.15 What is pre-construction period?
Ans. While computing income chargeable to tax under the head “Income from house property” in case of a let-out property, the taxpayer can claim deduction under section 24(b) on account of interest on loan taken for the purpose of purchase, construction, repair, renewal or reconstruction of the property.
Deduction on account of interest is classified in two forms, viz., interest pertaining to pre-construction period and interest pertaining to post-construction period.
Post-construction period interest is the interest pertaining to the relevant year (i.e., the year for which income is being computed).
Pre-construction period is the period commencing from the date of borrowing of loan and ends on earlier of the following:
> Date of repayment of loan; or
> 31st March immediately prior to the date of completion of the construction/acquisition of the property.
Interest pertaining to pre-construction period is allowed as deduction in five equal annual instalments, commencing from the year in which the house property is acquired or constructed.
Thus, total deduction available to the taxpayer under section 24(b) on account of interest will be 1/5th of interest pertaining to pre-construction period (if any) + Interest pertaining to post construction period (if any).
Q.16 My spouse and I jointly own a house in which both of us have invested equally out of independent sources. Can the rental income received be split up between us and taxed in the individual hands?
Ans. Yes, if the share of each co-owner is ascertainable.
Q.17 What is self-occupied property?
Ans. A self-occupied property means a property which is occupied throughout the year by the taxpayer for his residence (also refer next FAQ).
Q.18 How to compute income from self occupied property?
Ans. A self-occupied property means a property which is occupied throughout the year by the taxpayer for his residence. Income chargeable to tax under the head “Income from house property” in case of a self-occupied property is computed in following manner :
| Particulars | Amount |
| Gross annual value | Nil |
| Less:- Municipal taxes paid during the year | Nil |
| Net Annual Value (NAV) | Nil |
| Less:- Deduction under section 24 | |
| ➣Deduction under section 24(a) @ 30% of NAV
➣Deduction under section 24(b) on account of interest on borrowed capital |
Nil
(XXXX) |
| Income from house property | XXXX |
From the above computation it can be observed that “Income from house property” in the case of a self occupied property will be either Nil (if there is no interest on housing loan) or negative (i.e., loss) to the extent of interest on housing loan. Deduction in respect of interest on housing loan in case of a self-occupied property cannot exceed Rs. 2,00,000 or Rs. 30,000, as the case may be (discussed later). Deduction of municipal taxes paid during the year will not be allowed in case of self occupied property.
Q.19 Can a property not used for residence by the taxpayer be treated as self occupied property?
Ans. A self-occupied property means a property which is occupied throughout the year by the owner for his residence. Thus, a property not occupied by the owner for his residence cannot be treated as a self occupied property. However, there is one exception to this rule. If the following conditions are satisfied, then the property can be treated as self-occupied and the annual value of a property will be “Nil”, even though the property is not occupied by the owner throughout the year for his residence :
(a) The taxpayer owns a property;
(b) Such property cannot actually be occupied by him owing to his employment, business or profession carried on at any other place and he has to reside at that other place in a building not owned by him;
(c) The property mentioned in (a) above (or part thereof) is not actually let out at any time during the year;
(d) No other benefit is derived from such property.
Q.20 What income is charged to tax under the head “Income from house property”?
Ans. Rental income from a property being building or land appurtenant thereto of which the taxpayer is owner is charged to tax under the head “Income from house property”.
Q.21 What will be the tax implications if a person occupies more than one property for his residence? Can he treat all the properties as self occupied (SOP) and claim gross annual value (GAV) as Nil?
Ans. The SOP benefit (i.e., treating property as SOP and claiming GAV as Nil) is available only in respect of one property occupied by the owner for his residence.
If a person occupies more than one property for his residence, then the SOP benefit will be granted only in respect of any one property as selected by him and other property/properties will be treated as “Deemed to be let-out”. Income from deemed to be let-out property is computed in the same manner as discussed in the case of “Let-out” Property.
However w.e.f. Assessment Year 2020-21, a person can claim two properties as self-accupied house property.
Q.22 I own two houses. One is a farmhouse that I visit on weekends and the other is in the city that I use on weekdays. Is it correct to treat both these residences as self occupied?
Ans. No, for the purpose of Income-tax Law you can claim only one property as self occupied property and other property will be deemed to be let-out property. upto Assessment year 2019-20.
However, w.e.f. Assessment 2020-21, a person can claim two properties as self-occupied house properties subject to certain conditions. Thus, from Assessment Year 2020-21 onwards only, both the houses can be treated as self-occupied properties subject to fulfilment of specified conditions.
Q.23 I own three houses which are occupied by me and my family. Is there any tax implication for financial Year 2021-22?
Ans. Yes, as already mentioned in the earlier FAQ, w.e.f., Assessment Year 2020-21, a person can claim two properties as self-occupied house properties. Thus, any two of the house properties (as per your choice) shall be treated as self-occupied and the remaining property shall be treated as deemed let-out and will be taxed accordingly.
Q.24 In case of a self-occupied property, how much of interest on housing loan can be claimed as deduction?
Ans. In the case of self-occupied property, deduction under section 24(b) cannot exceed Rs.2,00,000 or Rs. 30,000 (as the case may be). If all the following conditions are satisfied, then the limit in respect of interest on borrowed capital will be Rs.2,00,000:
> Capital is borrowed on or after 1-4-1999.
> Capital is borrowed for the purpose of acquisition or construction (i.e., not for repair, renewal, reconstruction).
> Acquisition or construction is completed within 5 years from the end of the financial year in which the capital was borrowed.
> The person extending the loan certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house or as re-finance of the principal amount outstanding under an earlier loan taken for acquisition or construction of the property.
If any of the above condition is not satisfied, then the limit of Rs. 2,00,000 will be reduced to Rs. 30,000.
Deduction from Assessment Year 2017-18
As per Section 80EEof the Income-tax Act, deduction of up to Rs. 50,000 is allowed to an Individual towards interest on loan taken for acquisition of a residential house property. However, the deduction is allowed subject to following conditions:
The deduction under Section 80EE is allowed subject to following conditions:
(a) the loan should be sanctioned by the financial institution during the period beginning on the 01-04-2016 and ending on 31-03-2017;
(b) the amount of loan should not exceed Rs. 35 lakhs;
(c) the value of residential house property should not exceed Rs. 50 lakh; and
(d) the assessee should not own any residential house property on the date of sanction of loan.
Deduction from Assessment Year 2020-21
With an objective to provide an impetus to the ‘Housing for all’ initiative of the Government and to enable the home buyer to have low-cost funds at his disposal, the Finance (No. 2) Act, 2019 has inserted a new Section 80EEA under the Income-tax Act for those individuals who are not eligible to claim deduction under Section 80EE. An individual can claim deduction up to Rs. 150,000 under Section 80EEA subject to following conditions:
(a) Loan should be sanctioned by the financial institution during the period beginning on 01-04-2019 and ending on the 31-03-2022
(b) Stamp duty value of residential house property should not exceed Rs. 45 lakhs;
(c) The assessee should not own any residential house property on the date of sanction of loan; and
(d) The assessee should not be eligible to claim deduction under Section 80EE.
Hence, an individual who does not meet the criteria of Section 80EE shall now be eligible to claim deduction under Section 80EEA of up to Rs. 150,000 in addition to deduction under section 24(b).
Q.25 How to compute income from a property which is self-occupied for part of the year and let out for part of the year?
Ans. At times a property may be let-out for some time during the year and is self-occupied for the remaining period (i.e., let-out as well as self occupied during the year). For the purpose of computation of income chargeable to tax under the head “Income from house property”, such a property will be treated as let-out throughout the year and income will be computed accordingly.
However, while computing the taxable income in case of such a property, actual rent will be considered only for the let-out period.
Q.26 How to compute income from a property, when part of the property is self-occupied and part is let-out?
Ans. A house property may consist of two or more independent units, one of which is self-occupied and the remaining are/are used for any other purpose (i.e., let-out or used for own business). Income from such property will be computed in the following manner:
a) Part/unit which is occupied by the taxpayer for his residence throughout the year will be treated as an independent property and income from such a part/unit will be computed in the manner as discussed in case of a self-occupied property.
b) Part/unit which is let out will be treated as an independent property and income from such a part/unit will be computed in the manner as discussed in case of let out property.
Q.27 What is the tax of treatment of unrealised rent which is subsequently realised?
Ans. Any subsequent recovery of unrealized rent shall be deemed to be the income of taxpayer under the head “Income from house property” in the year in which such rent is realized (whether or not the assesse is the owner of that property in that year). It will be charged to tax after deducting a sum equal to 30% of unrealized rent.
I have 5 separate let out properties. Should I calculate the house property income separately for each individual property or by clubbing all the rental receipts in one calculation?
The calculation will have to be made separately for each of the properties.
Q.28 What is the tax treatment of arrears of rent?
Ans. The amount received on account of arrears of rent (not charged to tax earlier) will be charged to tax after deducting a sum equal to 30% of such arrears. It is charged to tax in the year in which it is received. Such amount is charged to tax whether or not the taxpayer owns the property in the year of receipt.
House Rent Allowance (HRA) Taxability & calculation
[As amended by Finance Act, 2023]
I HAVE A PROPERTY WHICH IS SUB-LEASED FOR MORE THAN 12 YEARS I PAY RENT AND RECEIVE RENT I WANT TO KNOW WHETHER I CAN SHOW THE NET RENT RECEIVED AND PAID HAS INCOME
Two house properties : In the first house the first name is of X and second name is of Y. In the second house the first name is of Y and second name is of X. Both of them are not let out. What is tax liability?
What will be tax implication If I let out my house property on lease for a long period receiving an one time advance.
I am very happy to read important 29 FAQs on House Property and 49 good questions from the readers.
I have rented out my own small 1 BHK flat and moved into bigger flat paying higher rent than the rent I earn. How will I compute tax and which ITR form to be filed if I have only interest earnings as I am a retired person.
I understand insurance for the Building can be deducted from NAV.
Kindly advise whether this is deductible and the Income Tax Section that it refers.
I have rented my house, and receive rent. In my case, I assume it is easy to compute the actual rent I received in a year, including periods when there is no rent. I report in my tax-return the actual rent. Am I treating this right?
I own two houses one in native place one in the place I reside for which I have combined loan with my spouse. Both are having home loans as purchased on loan. One house I show a deemed income as my parents are residing in it. shall I claim interest and principal benefit for both houses
Suppose four person buy an office in co ownership. One of the co owner is using the office. The question is whether he should calculate depreciation on his part and what about other 4 co owners.
i have a house property in noida ,and my office is also in noida and i said to my employer i m living on rent ,and m getting HRA from company and principal amt for home loan in sectn 80C and my query is …can we take section 24 interst deduction ….as company is not accepting this as company is saying house and office is located within 14 kms
HI,
What if same house property is divided into two units one is self occupied and other is rented out to six students.
More so there is a house loan interest to be claimed.How much and to what extent interest will be allowede in both cases.
I have a small (One Room Kitchen flat of about 340 sq feet carpet area in Mumbai suburban. Since it is very small for me now, I have let it out on rent and residing in the same area in a bigger house by paying almost two times more rent (i.e. three times rent received by me for my flat). So, can I show the interest and EMI paid by me towards loan taken for the flat owned by me?
plot on my name on allotment by HUDA.( wife) no payment made by me .
later joint by husband payment made by him .
constructed cost by mother of husband
who will take income from house property
Dear sir.
My FMV, S.R. and rent actually received is same but i have not realised rent for 2 months . In that way my actual rent received is less than the FMV & S.R.
But i Have to pay tax on whichever is higher i.e FMV & S.R.
Ultimately I am giving tax on the amount which i never realised. Is this the intention of law? Kindly share if any there is any solution. so that, i can save myself from additional tax.
dear sir i taken home loan 150000 but land is my wife name but i am paying mothhly installment of home loan my wife is house wife so she has no any income can i find deduction us 80 c ad for interest.
Can HRA exemption be allowed under Rule 10 (13a) for a person who is also availing exemption under income from house property. If so what is the limit?
Me n my wife jointly owned a flat. Now the flat is put on rent. Rent agreement done in the name of my wife.
Please advide me who will show this income? who will submit property return for this income.
purchase property 3,95,00,000.area 195 sq.yds. prperty demolished. construted 45 sq.yds. remaning area used for car parking.interest paid 38,50.000 allowed as payment.
Hi,
I own house but currently rented out due to higher rent received and currently staying in rented house where rent is less.
Can you please guide me if ia can claim HRA as well as housing loan principle and interest>
Thank You
me and my wife have a property in joint name & repayment paid by my account later on my wife reimburse her share to me shall exemption of rs 200000/- can be taken by both or singly by me
Hii
An assessee have two property, one it is used for residential purpose and other for commercial purposes, so both can be treated as Self Occupied property ?
I own a house at my home town occupied by my parents (I have been showing it as self occupied). I am planning to buy a house at my work place (> 500 km away from home town).
I read somewhere that if an individual owns more than one residential property, any one residential property at the discretion of the individual is considered as self-occupied property and the other residential property owned, even if it is not actually let out, will have to be considered as “deemed let out property” (DLOP).
Using this clause, can I show the hometown house as self occupied and workplace house as deemed let out and claim interest exemption us sec 24 (beyond Rs. 200000) after duly netting deemed rental income.
Hi I have one house property and I am planning to buy another property.
Do I have a choice to declare property with lower interest as self occupied to claim higher loss under income from house property.
So my choice of buying is soley from tax advantage purpose.
2. Does these properties have to be in same cities. Example if I stay in Hyderabad can I declare my second property in Mumbai as self occupied?
2. Does these properties have to be in same
sir the assesse has taken CC LOAN & used for construction of commercial complex.WHEATHER INTEREST PAID ON CC IS DEDUCTED UNDER THE HEAD INCOME FROM HOUSE PROPERTY U/S 24(I)
R/S; i want to know That if i have taking rene Rs10000/- per month including Electricity bill + Maintainance then.. can i releief of Electricity bill & maintainace From total incomeearning for ITR
Hi !
can a husband & Wife , both are co borrowers of a home loan. Is the principle amount & Interest amount be claim by both under section 24 ?
Or only one person can claim the same ?
Husband and wife purchased resold property. but 1st is wife name and second husband. can they claim stamp duty and registration charges equally???
Hi, I have a house which is let out . But I stay in a rented house of lesser rent in the same city. I am a retired person. should I have to include the rent received as income? No loan has been taken and no interest is also paid.
Kindly clarify
Thanks
Whether the interest paid on housing loan can be claimed as deduction from total gross
income under the head “Salaries” and simultaneously claimed as deduction from Income from House Property under Section 24(b) of Income Tax Act. If so, is their any ceiling on deductions under both these Heads.
Further, whether the deductions of interest paid on housing loan claimed under the head Salaries is restricted to self occupied housing unit.In other words, if I have a parental house where I am residing and have acquired a flat on loan which is rented out, whether I am eligible to claim interest paid on housing loan under the head Salaries and also claim same deduction under the head Income from House Property under section 24(b)on interest paid on loan towards self acquired property which is rented out.
i have two house. one is sop and other is rent out house property. for AY 2015-16, which ITR should I use to file Return of Income.
Kindly confirm that interest paid on Home Loan to Bank for purchasing of Residential Plot for house is exempted from Income Tax under Section 24.
dear sir i have one query that i have two houses one is let out property another is self occupied property my family staying at self occupied property and iam employ and staying at job place. please clarify that my query is how to calculate income from let out property and how to adjust interst on housing loan on self occupied property and hra
I had query regarding income form form house property regarding sec 23(1c), which is put as under:
If, M.V = 48000; FV= 46000; SV= 52000; AR=42000
The house was vacant for 3 months.
Compute GAV ?
Since E.R will be Rs. 48000 and AR (for 9 months) will be 31500
Therefore from the above two ER will be chosen (as AR is lesser than ER not only because of Vacancy) = 48000
Now we have to provide for vacancy of 3 months from the above to find out GAV.
Question is on the basis of what we should deduct 3 months vacancy either on the basis of ER or AR
i.e., either (48000/12 *3 = 12000) or (42000/12*3) = 10500
I have two books one shows on the basis of AR other one on the basis of ER.
please help me out.
What is I have rented out my property & I am received a rent of Rs. 13500/- and I have entered into another agreement in which I have took property on rent and I am paying Rs. 12500/-. Can I claim this 12500/- as a deduction?
I was residing in the flat from apr 14 to aug 14. from sept 14 to mar 15 it was let out
for a rent @ 13000 Pm.
what will be my tax liability for ass. year 2015-16?
Further I have been paying Rs 15000/- as rent for flat taken near my office IN THE SAME CITY VIZ PUNE from Aug 14 to MaR 15.NO HRA IS CLAIMED FROM THE EMPLOYER.
What exemption I can get for this
A & B are carrying out business in partnership. The premise from which they carry out business is owned by the spouses of A & B jointly. No amount / rent is paid by the partnership business to either of the spouses for the use of the premise.
In the above scenario, is any income chargeable in the hands of the spouses under the head income from house property. Please clarify.
Thanks !!
Dear Sir, I have purchase a flat at 28L ,Now i would like to sale with in 6 months.If buyer pay 30L or 26L , what is a TAX on amount . Thanks
Can NAV under house proprty be negative in case of deemed to be let out?
@Anil Kumar:
Income under the head HOUSE PROPERTY 1500 P.M
CLAIM HRA or 80GG benifrt on paying 12000 p.m as per relvent provision whichever covers it
If someone is earning 1500 per month as rent on his property and is paying 12000 as rent for the place where he is staying, What will be the tax implications.
Your comment is awaiting moderation.
03/30/2015 at 8:01 PM
What is a position if real estate developers purchases one or more flat in a building which one intends to redeveloped in times to come. meanwhile he rent out those flats and received rental income then whether it is treated as income of house property or profits and gains from business. since he is business of real estate and a developers. whether it makes difference if it rental income of commercial space in the same building?
Also does it makes a difference if the developers is a AOP
please enlighten sir
narendra k agarwal
– See more at: https://taxguru.in/income-tax/faqs-income-house-property.html#comment-1618861
What is a position if real estate developers purchases one or more flat in a building which one intends to redeveloped in times to come. meanwhile he rent out those flats and received rental income then whether it is treated as income of house property or profits and gains from business. since he is business of real estate and a developers. whether it makes difference if it rental income of commercial space in the same building?
please enlighten sir
narendra k agarwal
My employer refuses to give the benefit of ‘Loss from House property” which is let out and is restricting to max of 2 lac as -self-occupied u/s 24(b). He says to claim the actuals for letout directly from the ITO. what is the actual legal position on the subject ?
Thank You sir Its very useful
But i have one query that i am registered owner of house property and loan is received by my spouse for reconstruction of house property and paid interest. my spouse is not having assessable income so i want claim deduction u/s 24(b). Is it Possible? Please Suggest me.
Regards
ShaikShavali
Thank you sir its very useful
I had purchased a Flat in Ghaziabad (Uttar Pradesh) in February, 2002. In December 2014 I made the full and final payment towards that loan and closed the loan account with the ICICI Bank, for which they gave me a certificate to claim tax benefit. After that in Jan. 2015 I again took a Home Loan from Union Bank of India and purchased a flat in Kolkata (my home town). I have also been issued a certificate by the Union Bank of India to claim tax benefit. My question is since these two happened in the same financial year i.e. FY 2014-2015, can I get both the benefits?
Dear Sir,
I own only one house located in Mumbai with home loan on it. Currently it is self occupied.
If I plan to give it on rent and move to another house (within Mumbai itself) for which I will pay rent then my querries are:
(1)Can I get benefit of Interest paid more than Rs 2,00,000 p.a in calculating taxable value of income from house property, ofcourse after declaring the rental income on it as well.
(2) Parallel to above, can I also claim HRA benefit (under income from Salaries) for the rent I am paying towards another house that I will stay in?
SV Pedgaonkar
You will get the maximum deduction of Rs. 100000 as per section 80U
problem:
total refund is Available for the AY-2013-14 =136600 but unfortunately one of tax consultant file ITR-1 only for the amount of 80000 and also received but remaining 36600 is still not received.An inquiry with the jurisdictional Income tax office amount of 36600 is not specified in ITR-1.
How to get refund of 36600.
Please provide proper direction for solving the problem
communicate with this e-mail id. avenkateshreddy66@gmail.com
Dear sir
i have two querries
1)
i own two properties
both jointly by self & wife name
loan taken jointly for both
i wanted to show II nd house rent as income from house property and negate it with interest
I am paying on housing loan.
is it mandatory that if loan is jointly taken, i can only claim 50% of interest for IInd prop?
if my wife is not showing any interest in her IT return. Can i show complete interest 100% against rent i am getting .
pl advice
under sec 24(b)
2)
i am a disabled person with 60 % disability
kindly tell what IT benefit i get
is it 50000 or 100000 under 80 U DD DDD etc etc
any changes /enhansement in this yr budget.
pl clarify
thank you