PROPERTY TAX

Save Share

This query is : Resolved

Quick Summary

This discussion clarifies UK property tax rules, particularly concerning self-occupied and rental properties. Even with new rules allowing two properties to be declared self-occupied, all properties must still be declared for income tax purposes. Rental income from a shop is reported under 'Income from House Property'. For individuals with multiple properties and business income, ITR-3 is recommended as it accommodates both rental and presumptive business income.

avtar singh

avtar singh (Querist)
Follow

16 August 2020 MY FRIEND HAD THREE PROPERTIES (TWO HOUSE AND ONE SHOP).FIRST ONE IS IN WHICH HE IS LIVING WITH HIS FAMILY, SECOND ONE WHICH IS VACANT AND THIRD ONE IS SHOP WHICH IS LET OUT.NOW AS PER NEW RULE WE CAN DECLARE TWO PROPERTIES AS SELF OCCUPIED PROPERTY.SO MY QUESTION IS

1.IS THERE IS ANY NEED OF SHOWING THESE TWO HOUSE PROPERTIES IN INCOME TAX AS THERE IS NOT ANY TYPE OF LOAN ON THESE PROPERTIES?
2.IF SHOP IS LET OUT ,WE CAN SHOW IT UNDER HEAD "INCOME FROM HOUSE PROPERTY " OR SOME OTHER OPTION IN ITR?

CA KARAN SINGH

CA KARAN SINGH (Expert)
Follow

16 August 2020 1. Yes, you need to show other two properties also.
2. Income from Letting out will be shown under Income from House Property.

avtar singh

avtar singh (Querist)
Follow

17 August 2020 But if there is exemption of two self occupied house properties then why it is need to show that properties in income tax if self occupied properties more than two are taxable

CA KARAN SINGH

CA KARAN SINGH (Expert)
Follow

17 August 2020 Exemption of Income & reporting of information is different thing. Even if an income is exempt, still there are reporting requirements. So it is better to declare complete information.

avtar singh

avtar singh (Querist)
Follow

19 August 2020 So which ITR he needs to file in which he reports only two house property ,paid tax of shop under head income from house property and shows business income(presumptive) beacuse in ITR 4 we can select only one property whether self ocupied or let out.

CA KARAN SINGH

CA KARAN SINGH (Expert)
Follow

20 August 2020 Form ITR - 2 will be applicable

avtar singh

avtar singh (Querist)
Follow

20 August 2020 But businessmen can file ITR 2 and shows presumptive income in it and others properties

CA KARAN SINGH

CA KARAN SINGH (Expert)
Follow

20 August 2020 What business your friend is doing ?

avtar singh

avtar singh (Querist)
Follow

21 August 2020 He has shop of dairy products (curd, milk, cheese).