House propertyy

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2014 MR. X is the owner of a house Property it has been in his self-occupancy for residential purposes DURING 2013-14. He is transferred in February 2014 to the Nagpur Branch of the Company. He intends to allow his sister to occupy the house free of rent in his absence.
He seeks your advice in COMPUTING INCOME UNDER THE HEAD HOUSE PROPERTY FOR A.Y 2014-2015

@VaibhavJ

@VaibhavJ (Expert)
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03 September 2014 How many residential property he is owning?

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2014 ONLY ONE HOUSE PROPERTY

DEEPAK KUMAR SRIVASTAVA

@VaibhavJ

@VaibhavJ (Expert)
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03 September 2014 Since he is owning only one property he can let out to his sister rent free.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2014 SUPPOSE HE ALLOWED HIS SISTER TO OCCUPY.

NOW THE QUESTION IS WHETHER IT SHALL BE CHARGED AS SELF OCCUPIED PROPERTY OR LET OUT PROPERTY

@VaibhavJ

@VaibhavJ (Expert)
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03 September 2014 When individual is unable to occupy his property which is situated in one location and on account of his employment/business/profession carried out at any other place he stays in a rented premise in such other place then said property is deemed to be self occupied.

Now when sister occupies property & no rent is paid then it can not be termed as let out as sister is relative to individual.

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Querist : Anonymous

Querist : Anonymous (Querist)

03 September 2014 SEC-23(3)(b)
if any other benefit is derived from a property :-

which is a self occupied; or

which he cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building NOT belonging to him;

then such property shall be treated as deemed to be let out

now my question is allowing sister to occupy is a benefit derived from such property or not

@VaibhavJ

@VaibhavJ (Expert)
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03 September 2014 Hi,

S/23(3)(b)When residential house cannot actually be occupied by the owner by reason of the fact that owing to his employment, business or profession carried on at any other place, he has to reside at that other place in a building not belonging to him, the annual value of such house shall be taken to be nil: Provided that the following conditions are fulfilled, namely,-

(i) such house is not actually let, and

(ii) no other benefit therefrom is derived by the owner.

So, when your family member is staying in house property then no such benefit is derived to you by allowing them to use the property.

Thanks.

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