Income from renting of house property

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sudhir (Querist)
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13 December 2014 Sirs,
kindly clarify the following:

(1)Is the income from renting of house property taxed straight at applicable slab rate OR is there any other calculation in this regard?

(2) At the time of renting out some security amount is deposited by the tenant. Later, at the time of vacating the house, sometimes the tenant may adjust security deposit as rent for the last months. When should we treat this as income for tax purpose?

Amol S Joglekar

Amol S Joglekar (Expert)
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13 December 2014 01.From the rent received, the municipal taxes may be deducted. A 30% deduction is given for calculating net rent.

02. The year in which the security deposit gets converted to RENT, shall be the time when rent should be considered for taxation.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 December 2014 Deductions (under section 24) can be claimed.
1. 30% standard deduction.
2. municipal tax.
3. Interest on borrowed fund etc,.
When you adjust the security deposit consider it as income at that time.

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