house property

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Hardeep Singh (Querist)

17 February 2011 Mr.H has two houses namely A and B. house A is self occupied and house B has two independent equal units namely X and Y. unit X is let out @ rs.1000 p.m. and unit Y is under own business by Mr.H. unit X was let out only for a period of 1-4-09 to 28-2-10 and self occupied from 1-3-10 to 31-3-10
municipal tax for house B is rs. 2000 and interest on loan taken for house A is rs. 9000 p.a. and for house B is rs. 18000 p.a. so what will the income from house property will be in the above question.
please specify separately.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

17 February 2011 House A : (SOP)
Net Annual value=0
Less: Interest U/s 24= 9000/

A> Net Income from SOP =-9000
House B: Unit X (Let out Property)
Gross Annual Value......... =12000
Less: Municipal taxes ......= 1000
--------
Net Annual Value 11000
Less :30% Standard Deduction 3300
Interest on Capital Borrowed 9000
-------
B> Net Income from Let out Property BX=-1300
*
Note it has been assumed as Unit X & Y are of the same size and area.
50% of Interest and Municipal Taxes can be claimed as Business Expenditure.
Municipal Tax will be allowed only on payment basis.

Hardeep Singh

Hardeep Singh (Querist)

18 February 2011 sir, can you explain why you have taken GROSS ANNUAL VALUE of unit X of house B as 12000/- whereas the rent actually received is (1000*11) 11000/-

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