Interest deduction on house property

This query is : Resolved

Chaitali Yambal (Querist)
Follow

21 January 2014 Hi,
the person owns a single house property. since he is working in different city, his parents are living in that owned property.

Can he show that property as deemed let out property for the purpose of taking full Interest Deduction??

If YES, what should be the deemed rental Income??

AVTAR SINGH

AVTAR SINGH (Expert)
Follow

21 January 2014 The annual value of house property has been defined as 'the amount for which the property may reasonably be expected to be let out for a year'.
However, if your property is let out for the whole or a part of the financial year, the gross annual value will be the amount received during the year as a result of the letting out of the house property. This shall also exclude the rent that the taxpayer is unable to realize in the financial year.
The following four factors have to be taken into consideration while determining the annual property:
a. Rent payable by the tenant.
b. Municipal valuation of the property.
c. Fair rental value (market value of a similar property in the same area) of the property.
d. Standard rent payable under the Rent Control Act.

Chaitali Yambal

Chaitali Yambal (Querist)
Follow

21 January 2014 Hay,

Thanks a lot...

Parents of the owner are living in the house, so actual rent received in NIL, in that case, what will the rental Income??