Feedback
 
 

Salary Income Tax
Status of ITR   CALL: 9900123456
Home | Individuals | Corporates | About Us | Contact Us
Income Form House Property
This is the only head where Income is taxed on Notional Basis. The taxability may not necessarily be of actual rent or income received but the potential income, which the property is capable of yielding. Accordingly, if a person owns a property which is lying vacant, notional income with respect to such property may be liable to tax even though the owner may not have received any income from such property.

Properties Chargeble to Tax

Rental income from letting out of residential and commercial buildings is covered under this head of income.
Computation of income from house property which is Let Out
Particulars Amt (Rs.)

Gross Annual Value (G.A.V)

xxx

Less: Municipal Taxes

xxx

Net Annual Value

xxx

Less: Deduction under Section 24 :

 

(a) Standard deduction @ 30%

xxx

(b) Interest on borrowed capital (full amount)

xxx

Income from House Property

xxx

Computation of income from house property which is Self Occupied
Interest (Upto maximum of Rs.150000)

In the case of a self occupied house interest paid or payable is subject to a maximum limit of Rs,1,50,000 (if loan is taken on or after 1 April 1999 and construction is completed within 3 years) and Rs.30,000 (if the loan is taken before 1 April 1999).


COMPOSITE RENT

Situation Description

A

Where Composite rent includes Rent on building & charges for other Supplementary Services, e.g, Gas/ Electricity/Lift service etc.  

  • The value of such services if, should be determined and the Building rent will be taxed under House property & services will be taxed under Other Sources or Business Income if letting out is regular business.

B

Where Composite rent includes Rent on building and other assets, e.g., Furniture, Equipments & are Inseparable:  

  • Total rent received including for assets is taxed under Other Sources or as Business income.

C

Where Composite rent includes Rent on building and other assets, e.g., Furniture, Equipments & are Separable:  

  • Rent for building is taxed under House Property and for Assets under House property & services will be taxed under Other Sources or Business Income if letting out is regular business.

Loss from House Property:

  • Current Year Loss from House Property can be set off with any other head of Income.
  • Loss from house property can be carry forward up to 8 Assessment Years


Tax Talk
Request A Service
   
Services :
Name :
E-mail :
Mobile :
Company :
Location :
 
   
Testimonials
Excellent saving of time & money with Tax people, The mobile team with expertise in tax filing made my task easy.
  Vishal, Cognizant