House property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2012 why rental income of my second house is adding in my income . i can proof no rented out by nil consumption of water and electricity bill.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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19 August 2012 One house will be treated as for self occupation and the other will be treated as 'deemed to be let out' as per section 23(4)(b) of the Income tax Act,1961. Reasonable rent of the second property will be considered as your income for income tax purposes even though you can prove that it is not let out.

Querist : Anonymous

Querist : Anonymous (Querist)

19 August 2012 thanks but how to decide reasonable rent

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 August 2012 The reasonable rent is the fair rent that the house would fetch if actually let out.

You can compute the same by taking an average of rent of similar houses in your locality.

It does not have to be an exact figure.

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