04 July 2016
Mr and B are holding the 2nd residential flat on 50: 50 basis and the flat lying vacant since possession taken and not received any benefit and rent form any body is it necessary to calculate the notional rent for Income tax purpose while filing the I T Return for a.y. 2016-17
04 July 2016
According to Income Tax Act, 1961, if a resident owns more than one residence then maximum one residence is considered to be as self occupied. Basically, it signifies that if you possess two houses in your name, then for Income Tax point you can show one house as self occupied. If the second house has not been rented or say used for any personal reason, it will be treated as rented out and will be shown as additional income in Income Tax Statement. Here we try to explain the process to calculate notional rent income.
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