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Whether notional interest on interest-free security deposit is includible in ‘house property’ income referred to Full Bench
Case Law Details
- Case Name
- Commissioner of Income Tax, Delhi III Vs Moni Kumar Subba (Delhi High Court)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- All High Courts, Delhi High Court
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Brief : The assessee let out property on a rent of Rs. 90,000 per month and also received interest-free security deposit of Rs. 8.58 crores. The property was not subject to the Rent Control Act. The assessee claimed that only the rent could be taken into account for determining the ‘annual value’ of the property and not the notional interest on the deposit. The AO determined the ‘annual value’ u/s 23(1)(a) by adding Rs. 30 lakhs of notional interest. The CIT (A) and Tribunal deleted the addition by holding that the rateable value as determined by the MCD had to be taken as the “fair ...
It will be calcuated from the day stamp duty is paid, i.e., from the date on papers.
How is calculation of 3 yrs or 36 months considered? From date of stamp duty paid or from date of possession? I had booked my house in Jan 2007 (under construction) and got possession in August 2007. The stamp duty /franking was done in July 2007 and the registration was completed in Nov 2007. I now want to sell the house and buy a new one. Do i fall into short term capital gain bracket or can i avail of long term capital gain tax?