Income tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
20 April 2012
My wife has leased out commercial property @ Rs 30000/- per month.
Rent is recerived after TDS deduction @ 10% = Rs 27000/- per month.
What would be the taxable income and net tax payable of my wife with regard to this rent received?
Please help and elaborate with calculations if possible. Also provide any ways of tax planning/saving regarding the same. Thanks.
Rent is recerived after TDS deduction @ 10% = Rs 27000/- per month.
What would be the taxable income and net tax payable of my wife with regard to this rent received?
Please help and elaborate with calculations if possible. Also provide any ways of tax planning/saving regarding the same. Thanks.
CA PARAS BAFNA
(Expert)
21 April 2012
The monthly rental 30000/- will be taken into consideration and assuming that fair rent and Municipal Value of the property is less than the actual rent, the Gross Annual value of the property will be taken at 360000/-.
.
You may compute as under when full 12 months has been received -
Gross Annual Value(GAV): 360000/-
Less: Municipal Taxes ( if paid by your wife) : NIL
Net Annual Value : 360000
Less: Standard Deduction @ 30% of the GAV
:108000
Less: Interest on capital Borrowed: NIL
(Assuming that No loan has been taken for the purchase of property)
Net Annual Value : 252000
.
TDS credit may be taken against tax payable.
.
You may compute as under when full 12 months has been received -
Gross Annual Value(GAV): 360000/-
Less: Municipal Taxes ( if paid by your wife) : NIL
Net Annual Value : 360000
Less: Standard Deduction @ 30% of the GAV
:108000
Less: Interest on capital Borrowed: NIL
(Assuming that No loan has been taken for the purchase of property)
Net Annual Value : 252000
.
TDS credit may be taken against tax payable.
CA PRAVEEN SINGH
(Expert)
21 April 2012
YES..
AGREE WITH ABOVE EXPERT.
INCOME WILL BE TAXABLE UNDER HEAD INCOME FROM HOUSE PROPERTY.
RIGHT CALCULATION MADE ABOVE.
AGREE WITH ABOVE EXPERT.
INCOME WILL BE TAXABLE UNDER HEAD INCOME FROM HOUSE PROPERTY.
RIGHT CALCULATION MADE ABOVE.
CA Mahesh Vekariya
(Expert)
21 April 2012
ONE OTHER TAX PLANING IS THERE ...
IF YOU BOTH ARE JOINT OWNER OF PROPERTY THAN YOU CAN FORM A HUF AND YOU CAN TRANSFER THIS RENTAL INCOME TO THAT HUF INCOME .
SO THAT YOU WILL GET YOUR EXEMPTION LIMIT I.E. FOR MALE , ANOTHER OF YOUR WIFE AND THIRD IS OF HUF.
IF YOU BOTH ARE JOINT OWNER OF PROPERTY THAN YOU CAN FORM A HUF AND YOU CAN TRANSFER THIS RENTAL INCOME TO THAT HUF INCOME .
SO THAT YOU WILL GET YOUR EXEMPTION LIMIT I.E. FOR MALE , ANOTHER OF YOUR WIFE AND THIRD IS OF HUF.
21 April 2012
The experts have given their opinion and I also agree with them
CA PARAS BAFNA
(Expert)
21 April 2012
The planning given in reference to transfer of income to HUF is neither sought for by the Author nor it is consequential to the issue raised by him. Legally, also it lacks support.
While giving extra suggestions we have to be extra cautious also.
While giving extra suggestions we have to be extra cautious also.
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