house property

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Hardeep Singh (Querist)
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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)
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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
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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)
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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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