House property
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2013
(The query is for Area-wise division)
In calculation of income from house property, the interest on partly let-out and partly self occupied is apportioned on the basis of ratio of independent units. But if the bifurcation of the house into self occupied and let-out cannot be made , then how is the income and the interest thereon computed?
In calculation of income from house property, the interest on partly let-out and partly self occupied is apportioned on the basis of ratio of independent units. But if the bifurcation of the house into self occupied and let-out cannot be made , then how is the income and the interest thereon computed?
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2013
You can apportion it on the basis of area occupied for let out and self occupied
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2013
Any portion or part of a property which is let out shall be computed separately
under the ‘let out property’ category and other portion or part which is self-occupied
shall be computed under the ‘self-occupied property’ category. For instance, if a
building or a floor in a building of which assessee is the owner comprises of
independent, self-contained flats/units of residence/apartments, then income from
each unit can be computed separately where one flat is self-occupied and the other
unit/units is/are let-out. There is no need to treat the whole property as a single
unit for computation of income from house property unless the entire house if selfoccupied. Municipal valuation or fair rent, is not given separately, shall be
apportioned between the let out portion and self-occupied portion either on plinth
area or built-up floor space or on such other reasonable basis.
Similarly, where in a building, the ground floor is let-out and the first floor is
self-occupied or vice versa, such a property need not be recognized as a single unit.
Instead, income from the floor, which is let-out can be computed separately subject
to the principles applicable to a let-out property and income from the floor which is
self-occupied can be computed separately by applying the principles relating to selfoccupied property as if each such floor is an independent property. On the other
hand, if both the ground floor and first floor are occupied wholly for self-occupation,
the entire house should be treated as a single unit and computation should be done
accordingly.
Property taxes if given on a consolidated basis, can be bifurcated as
attributable to each such portion or floor on a reasonable basis. Floor area or
annual value can be considered as the appropriate basis for such bifurcation.
Interest expenditure relating to the let out floor can be claimed fully without any
restriction and the interest attributable to the self-occupied floor shall be allowed
up to Rs.30,000 or 1,50,000 as the case may be. The analogy applicable to selfoccupied property equally applies to unoccupied property mentioned under clause
(b) of sub-section (2) of Section 23.
under the ‘let out property’ category and other portion or part which is self-occupied
shall be computed under the ‘self-occupied property’ category. For instance, if a
building or a floor in a building of which assessee is the owner comprises of
independent, self-contained flats/units of residence/apartments, then income from
each unit can be computed separately where one flat is self-occupied and the other
unit/units is/are let-out. There is no need to treat the whole property as a single
unit for computation of income from house property unless the entire house if selfoccupied. Municipal valuation or fair rent, is not given separately, shall be
apportioned between the let out portion and self-occupied portion either on plinth
area or built-up floor space or on such other reasonable basis.
Similarly, where in a building, the ground floor is let-out and the first floor is
self-occupied or vice versa, such a property need not be recognized as a single unit.
Instead, income from the floor, which is let-out can be computed separately subject
to the principles applicable to a let-out property and income from the floor which is
self-occupied can be computed separately by applying the principles relating to selfoccupied property as if each such floor is an independent property. On the other
hand, if both the ground floor and first floor are occupied wholly for self-occupation,
the entire house should be treated as a single unit and computation should be done
accordingly.
Property taxes if given on a consolidated basis, can be bifurcated as
attributable to each such portion or floor on a reasonable basis. Floor area or
annual value can be considered as the appropriate basis for such bifurcation.
Interest expenditure relating to the let out floor can be claimed fully without any
restriction and the interest attributable to the self-occupied floor shall be allowed
up to Rs.30,000 or 1,50,000 as the case may be. The analogy applicable to selfoccupied property equally applies to unoccupied property mentioned under clause
(b) of sub-section (2) of Section 23.
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2013
Any portion or part of a property which is let out shall be computed separately
under the ‘let out property’ category and other portion or part which is self-occupied
shall be computed under the ‘self-occupied property’ category. For instance, if a
building or a floor in a building of which assessee is the owner comprises of
independent, self-contained flats/units of residence/apartments, then income from
each unit can be computed separately where one flat is self-occupied and the other
unit/units is/are let-out. There is no need to treat the whole property as a single
unit for computation of income from house property unless the entire house if selfoccupied. Municipal valuation or fair rent, is not given separately, shall be
apportioned between the let out portion and self-occupied portion either on plinth
area or built-up floor space or on such other reasonable basis.
Similarly, where in a building, the ground floor is let-out and the first floor is
self-occupied or vice versa, such a property need not be recognized as a single unit.
Instead, income from the floor, which is let-out can be computed separately subject
to the principles applicable to a let-out property and income from the floor which is
self-occupied can be computed separately by applying the principles relating to selfoccupied property as if each such floor is an independent property. On the other
hand, if both the ground floor and first floor are occupied wholly for self-occupation,
the entire house should be treated as a single unit and computation should be done
accordingly.
Property taxes if given on a consolidated basis, can be bifurcated as
attributable to each such portion or floor on a reasonable basis. Floor area or
annual value can be considered as the appropriate basis for such bifurcation.
Interest expenditure relating to the let out floor can be claimed fully without any
restriction and the interest attributable to the self-occupied floor shall be allowed
up to Rs.30,000 or 1,50,000 as the case may be. The analogy applicable to selfoccupied property equally applies to unoccupied property mentioned under clause
(b) of sub-section (2) of Section 23.
under the ‘let out property’ category and other portion or part which is self-occupied
shall be computed under the ‘self-occupied property’ category. For instance, if a
building or a floor in a building of which assessee is the owner comprises of
independent, self-contained flats/units of residence/apartments, then income from
each unit can be computed separately where one flat is self-occupied and the other
unit/units is/are let-out. There is no need to treat the whole property as a single
unit for computation of income from house property unless the entire house if selfoccupied. Municipal valuation or fair rent, is not given separately, shall be
apportioned between the let out portion and self-occupied portion either on plinth
area or built-up floor space or on such other reasonable basis.
Similarly, where in a building, the ground floor is let-out and the first floor is
self-occupied or vice versa, such a property need not be recognized as a single unit.
Instead, income from the floor, which is let-out can be computed separately subject
to the principles applicable to a let-out property and income from the floor which is
self-occupied can be computed separately by applying the principles relating to selfoccupied property as if each such floor is an independent property. On the other
hand, if both the ground floor and first floor are occupied wholly for self-occupation,
the entire house should be treated as a single unit and computation should be done
accordingly.
Property taxes if given on a consolidated basis, can be bifurcated as
attributable to each such portion or floor on a reasonable basis. Floor area or
annual value can be considered as the appropriate basis for such bifurcation.
Interest expenditure relating to the let out floor can be claimed fully without any
restriction and the interest attributable to the self-occupied floor shall be allowed
up to Rs.30,000 or 1,50,000 as the case may be. The analogy applicable to selfoccupied property equally applies to unoccupied property mentioned under clause
(b) of sub-section (2) of Section 23.
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 May 2013
Any portion or part of a property which is let out shall be computed separately
under the ‘let out property’ category and other portion or part which is self-occupied
shall be computed under the ‘self-occupied property’ category. For instance, if a
building or a floor in a building of which assessee is the owner comprises of
independent, self-contained flats/units of residence/apartments, then income from
each unit can be computed separately where one flat is self-occupied and the other
unit/units is/are let-out. There is no need to treat the whole property as a single
unit for computation of income from house property unless the entire house if selfoccupied. Municipal valuation or fair rent, is not given separately, shall be
apportioned between the let out portion and self-occupied portion either on plinth
area or built-up floor space or on such other reasonable basis.
Similarly, where in a building, the ground floor is let-out and the first floor is
self-occupied or vice versa, such a property need not be recognized as a single unit.
Instead, income from the floor, which is let-out can be computed separately subject
to the principles applicable to a let-out property and income from the floor which is
self-occupied can be computed separately by applying the principles relating to selfoccupied property as if each such floor is an independent property. On the other
hand, if both the ground floor and first floor are occupied wholly for self-occupation,
the entire house should be treated as a single unit and computation should be done
accordingly.
Property taxes if given on a consolidated basis, can be bifurcated as
attributable to each such portion or floor on a reasonable basis. Floor area or
annual value can be considered as the appropriate basis for such bifurcation.
Interest expenditure relating to the let out floor can be claimed fully without any
restriction and the interest attributable to the self-occupied floor shall be allowed
up to Rs.30,000 or 1,50,000 as the case may be. The analogy applicable to selfoccupied property equally applies to unoccupied property mentioned under clause
(b) of sub-section (2) of Section 23.
under the ‘let out property’ category and other portion or part which is self-occupied
shall be computed under the ‘self-occupied property’ category. For instance, if a
building or a floor in a building of which assessee is the owner comprises of
independent, self-contained flats/units of residence/apartments, then income from
each unit can be computed separately where one flat is self-occupied and the other
unit/units is/are let-out. There is no need to treat the whole property as a single
unit for computation of income from house property unless the entire house if selfoccupied. Municipal valuation or fair rent, is not given separately, shall be
apportioned between the let out portion and self-occupied portion either on plinth
area or built-up floor space or on such other reasonable basis.
Similarly, where in a building, the ground floor is let-out and the first floor is
self-occupied or vice versa, such a property need not be recognized as a single unit.
Instead, income from the floor, which is let-out can be computed separately subject
to the principles applicable to a let-out property and income from the floor which is
self-occupied can be computed separately by applying the principles relating to selfoccupied property as if each such floor is an independent property. On the other
hand, if both the ground floor and first floor are occupied wholly for self-occupation,
the entire house should be treated as a single unit and computation should be done
accordingly.
Property taxes if given on a consolidated basis, can be bifurcated as
attributable to each such portion or floor on a reasonable basis. Floor area or
annual value can be considered as the appropriate basis for such bifurcation.
Interest expenditure relating to the let out floor can be claimed fully without any
restriction and the interest attributable to the self-occupied floor shall be allowed
up to Rs.30,000 or 1,50,000 as the case may be. The analogy applicable to selfoccupied property equally applies to unoccupied property mentioned under clause
(b) of sub-section (2) of Section 23.
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