Income from a property is taxable only when
the property is either used or capable of being used for renting out in
case an individual or Hindu Undivided Family.
If the family has only one residential property
that property is treated as a self-occupied property. There will be no
taxable income in respect of such property. The condition is that the
owner should not have let out the property for any time during the year.
Fair value of the property between the municipal value of the property
and the rental value of a similar property in a similar locality, the
higher figure is treated as fair value of the property. In case of left
out properties, the annual income is the highest. However, if the Rent
Control Act is applicable in the locality where the property is
situated, the taxable value cannot exceed the standard rent fixed in
accordance with the Rent Control Act except where the rent actually
received exceeds the standard rent.
Fair value of the property
Between the municipal
value of the property and the rental value of a similar property in a
similar locality, the higher figure is treated as fair value of the
property. If the Rent Control Act is applicable in the locality where
the property is situated, the taxable value cannot exceed the standard
rent fixed in accordance with the Rent Control Act except where the rent
actually received exceeds the standard rent.
More than one property
In case one owns more than one home or
property, the exemption applies only to the self-occupied house. The
owner has the discretion to choose any one of the properties as
self-occupied. The deemed income from all other properties are taxable.
The remaining property will be deemed to be let out. In the case of the
house, it is the annual value of the property and not the actual rent
which is taxable. There is a specified procedure to determine the actual
value of the property.
Deduction of the income
From the gross annual value, certain deductions are
available to access to arrive at the net annual value. Under Section 24,
some expenses will be allowed as deduction from the amount arrived at
after deducting municipal taxes from the annual rental value. Where the
house has been acquired, the interest on the borrowed money for the
period prior to the previous year is deductible in five equal annual
installments.
Buy Spacious 2BHK and 3 BHK Flat in Thane, Contact Prestige Residency sales office to Know More @ 022 25985951 - 55
201, Prestige Precinct, Near Nitin Casting, Almeida Road, Panchpakhadi
Thane West - 400601
Phone: 91-22-25985951-55
Email: prescon@prescon.in
No comments:
Post a Comment