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Income tax on property

redwine (MBA) (26 Points)

19 September 2012

Hi how are you guys. I need a little help here. I have bought a new house and it is registered in January 2011. But i couldn't show it in assesment year 2011-2012. Now how can i show it in this assesment year 2012-2013. I want to include it in my tax return file. What is the proceddure for this? Thanks

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Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 19 September 2012

If you are staying in your house & you have taken a home loan for the house then the interst paid on the home loan will get deducted from your total taxable income & you will get a dedcution u/s 80c on account of principal paid on the home loan.

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redwine (MBA) (26 Points)
Replied 19 September 2012

But a tax lawyer told me that i have to show the house registration in my tax return. If i am living there now and then after 2 years if i rent it, then how will i show it ?

Originally posted by : Giridhar S Karandikar

You are not requried to show the house in the return when you purchase it. Only if you are earning any income from teh house by way of rent then the income from the property should be disclsoed in your return.

If you are staying in your house & you have taken a home loan for the house then the interst paid on the home loan will get deducted from your total taxable income & you will get a dedcution u/s 80c on account of principal paid on the home loan.

CA.Vinita Gupta (Deputy Manager- Finance) (2918 Points)
Replied 19 September 2012

The House need not be filed in the Return of Income as there is no place in ITRs to disclose the properties that you have purchased, But you need to prepare a Balance Sheet showing Statement of Assets and Liablities where the House that you have purchased has been purchased out of sufficient Capital in your Balance Sheet ( I mean to say you have to proof that you have suffiicient funds to purchase the house)

redwine (MBA) (26 Points)
Replied 19 September 2012

Thank you very much. That's what i needed to know. Now if i didn't showed it in the previous assessment year, can i show it in this assessment year? A tax officer is charging me on the guess that i have intention to hide rental income so i didnt show it in the year it was registered. Now i want to show it and will i have to give any penalty for that or so on?

I appreciate all your time for helping me out through this.