Calculation of income from let out property

Save Share

This query is : Resolved

Harshad Desai (Querist)
Follow

30 May 2013 If I have let out my property at my home town for which I am receiving annual rent of Rs.300000/-. I am also paying municipal tax for the said property of Rs.10000/- from my own bank account. I have taken a loan for the said property and for which I had paid Rs.500000/- towards interest & Rs.150000/- for prinicipal during the year.

What will be the actual loss? You are requested to give the detailed calculation.

Thanks & regards,
Harshad Desai

Silpa Agarwal

Silpa Agarwal (Expert)
Follow

30 May 2013 (Gross Annual)value of the property=
Rs.300000
Less:-Muncipal Taxes =Rs. 10000
Annual Value of the property=Rs.290000
Less:- Repairs/Collection charges
restricted to 30% of the annual
value of the property irrespective
of the amount spent or not =Rs. 87000
Less:- Interest on borrowed capital
=Rs.500000

Property Income/(Loss) =(Rs.297000)

Since the property is let out whole interest on borrowed capital is deductible.

Rupesh Jain

Rupesh Jain (Expert)
Follow

30 May 2013 GROSS VALUE 300000
LESS U/S 24 STD DEDUCTION @ 30%
90000
BAL= 210000
LESS: INTT 500000

INCOME(loSS ) 290000

AT PRESENT MUNICIPAL TAX NOT ALLOWED

Harshad Desai

Harshad Desai (Querist)
Follow

30 May 2013 Hi Shilpa,

Thanks a lot for your reply.

Harshad Desai

Harshad Desai

Harshad Desai (Querist)
Follow

30 May 2013 Hello!

Should I go ahead with reply given by Ms. Shilpa or Mr. Rupesh.

Kindly have final call on this.

Thanks & regards,
Harshad Desai