02 January 2016
I have one flat at Goregaon Mumbai. I have inherited one more 1 BHK flat at vile-parle from my Mother. This flat is unoccupied.
Since my family size is little big and for sake of convenience, I have hired one 1BHK flat in same society in Goregaon. Now issue is I have one unoccupied flat at Vile Parle and one flat on rent at Goregaon.
My query is Do I have to pay Income Tax on unoccupied flat at Vile Parle ?
02 January 2016
How do I compute acquisition cost of redevelop flat which was on rent before redevelopment. Can I take acquisition price as ready reckoner price ?
02 January 2016
Acquisition cost in normal parlance is the cost at which you acquired the flat. Ready reckoner prices or stamp duty valuations are considered for the purpose of deciding sales consideration. . If your query is in respect of the taxation aspect of Vile Parle flat, you have to consider its municipal valuation or rateable value taken for the purpose of the property tax. However, from this valuation if the property can fetch higher rent as prevalent in the area, you have to take that amount for the purpose of calculating tax. .
02 January 2016
Thank you Mr Bafna, I would like to know the acquisition price in case I sell this flat and computing long term tax liabilities. Pl help.
02 January 2016
Please refer the property documents and your mother's return for gathering the costs incurred. . In a case where the property has been acquired prior to 1.4.1981, valuation as on 1.4.1981 has to be obtained from a registered valuer . Further, improvement costs can also be considered. These costs are further indexed by applying the cost inflation index of the respective years.. .
02 January 2016
My mother's FLAT was on rent before it went in for redevelopment. That's the reason for me to bothering you with my difficulty. So what would be acquisition price of this flat ?
02 January 2016
Please go through the article by following the given link. This article affirms your view of taking acquisition price as of the Reckoner Price. However, it is better to go ahead after due consultation.
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