Deemed rent on house property

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This discussion explores how to determine the deemed rental value of a house property, particularly when it's located in a remote village and is unfit for habitation, potentially leading to a nil rental value. While the Income Tax authority may argue against a nil ratable value, advice suggests that even uninhabitable properties have a ratable value. The conversation also touches upon the tax implications of designating properties as self-occupied versus deemed let-out.

Mahesh Shah

Mahesh Shah (Querist)

02 February 2025 1) What will be deemed rental value of house property if --
a) House is in remote village and is unfit to reside in and due to remote area there is no value of rent ( rent value is nil) as nobody is ready to take house on rent
How to convience income tax authority that deemed rent is nil??
Kindly guide
Thanks

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 February 2025 Consider ratable value as per the gram panchayat office, it cannot be nil.

Mahesh Shah

Mahesh Shah (Querist)

02 February 2025 But what if house is in a condition which cannot be resided

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 February 2025 Even in that case, it has ratable value.
Taxpayers can designate any two of their house properties as self-occupied, meaning they will not incur any tax on these properties. While additional properties are deemed let-out and taxed based on notional rental income

Mahesh Shah

Mahesh Shah (Querist)

02 February 2025 Ok
Thanks
Thanks for reply

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

02 February 2025 You are welcome.

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