income tax

This query is : Resolved

GIRISH D.P (Querist)
Follow

16 July 2009 Ramesh owns a property.It is given on rent (rent being Rs10,000 p.m)to a bank.Municipal Value of the property is Rs 1,50,000.Fair rent is Rs 1,60,000 and standard rent is Rs1,50,000.Municipal tax paid by Ramesh is as follows-

Rs 26,000 on March 3,2008 and Rs 35,000 on May 10,2008.On May 1,2008 rent is increased from Rs 10,000 to Rs 15,000,with retrospective effect from 01-04-2007.Arrears of rent 2007-08 are paid in May 1,2007.what is the income chargeable to tax for the Assessment Years,2008-09
and 2009-10.

pls clarify regarding this.

Advance Thanks

GIRISH.

Abhishek Mohta

Abhishek Mohta (Expert)
Follow

17 July 2009 Assessment Year 2008-09

Annual Value of the House:

Municipal Value 150000
Fair Rent 160000
Standard Rent 150000

(I) (Municipal Value or Fair Rent whichever is higher subject to maximum of standard rent) 150000

Actual Rent 120000

Annual Value: Value in (I) or actual rent whichever is greater

Gross Annual Value 150000
Less: Municipal Taxes paid 26000
Net Annual Value 124000

Less: Deduction U/s 24
a.30% of the Annual Value 37200
b.Interest on housing loan nil
37200
Income from House Property 86800

Tax: Nil as income less than exemption limit assuming no other source of income

Assessment Year 2009-10

Annual Value of the House:

Municipal Value 150000
Fair Rent 160000
Standard Rent 150000

(I) (Municipal Value or Fair Rent whichever is higher subject to maximum of standard rent) 150000

Actual Rent 180000

Annual Value: Value in (I) or actual rent whichever is greater

Gross Annual Value 180000
Less: Municipal Taxes paid 35000
Net Annual Value 145000

Less: Deduction U/s 24
a.30% of the Annual Value 43500
b.Interest on housing Loan nil
43500
101500
Add: Arrears of Rent U/s 25B 60000
Income from House Property 161500

Tax: Rs. 1150 assuming no other source of income

Revised Return for Assessment Year 2008-09

Annual Value of the House:

Municipal Value 150000
Fair Rent 160000
Standard Rent 150000

(I) (Municipal Value or Fair Rent whichever is higher subject to maximum of standard rent) 150000

Actual Rent 180000

Annual Value: Value in (I) or actual rent whichever is greater

Gross Annual Value 180000
Less: Municipal Taxes paid 26000
Net Annual Value 154000

Less: Deduction U/s 24
a.30% of the Annual Value 46200
b.Interest on housing loan nil
46200
Income from House Property 107800

Tax: Nil as less than exemption limit assuming no other sources of income

My advise is to file a revised return as it saves tax but of course considering that last date of filing revised return has not passed.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now