Income from house property

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 July 2015 An NRI has let out his property for 8 month in last previous year then how to throw such income for assessment. He should show this income for 8 months or for 12 months or he needs to take Standard Rent as available through Municipality.
He is an NRI and paying interest on such property home loan.

Suppose Rent is 25000 per month so for 8 month 300000 and interest is 257000

please give me accurate calculation for such income and its calculation. He is NRI.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

20 July 2015 Vacancy allowance can be claimed for the vacant period. If we deduct interest from 3 lacs rent the balance income is below the basic exemption limit and no tax payable.

Amol S Joglekar

Amol S Joglekar (Expert)

20 July 2015 Income from house property is computed by taking the rent actually received. (INR 300,000 in your case.

Deduct municipal taxes, if any, paid by the assessee.

deduct 30 % of the residual amount on account repairs, maintenance etc. and interest on housing loan.

And please avoid THROWING your hard earned income, instead, OFFER it for taxation.

All the best

Querist : Anonymous

Querist : Anonymous (Querist)

21 July 2015 Dear Expert

Thanks for your valuable answer.

He got the rent for 8 months only for balance 4 month property was vacant. So according to HP calculation standard rent, FMV or Muncipial value should be obtained for full year and then calculate HP income or need to show only 8 month income only and it is the only property he has , he has no other property. How to calculate and show income??

Expecting answer on above issue only. He is NRI

Thanks in advance.

Amol S Joglekar

Amol S Joglekar (Expert)

23 July 2015 That is what I am trying to answer. Try to make a difference between LAW and PRACTICE.

What you are saying is absolutely correct.

But let me tell you, I have NEVER come across any case where standard rent and/or municipal valuation ever leveled the actual rent..... forget about the situation of standard rent and/or municipal valuation being MORE than actual rent. (That happens only in some professional examinations)

Your views please.

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