Query on house property
This query is : Resolved
25 December 2013
Dear Experts,
If a person purchases of ready to move in house property during July 2013 and left it vacant till Nov 2013, but puts it for rent for 3months by the end of financial year 2013-14 and gets rent of Rs. 36,000 (i.e 12K*3). Then what will be the rental income should be taken for calculation of tax as income from house property. Imagine there is no municipal tax or loan exist.
Is it; Rs. 36k, 96k (since the property purchased) or R. 144k (for 12 months)?
Many thanks in advance.
If a person purchases of ready to move in house property during July 2013 and left it vacant till Nov 2013, but puts it for rent for 3months by the end of financial year 2013-14 and gets rent of Rs. 36,000 (i.e 12K*3). Then what will be the rental income should be taken for calculation of tax as income from house property. Imagine there is no municipal tax or loan exist.
Is it; Rs. 36k, 96k (since the property purchased) or R. 144k (for 12 months)?
Many thanks in advance.
CA DHEERAJ
(Expert)
25 December 2013
FIRST STEP
YOU COMPARE MUNCIPAL VALUE AND FAIR RENT
SECOND STEP
COMPARE HIGHER OF FIRST STEP AND STANDARD RENT
THIRD STEP
COMPARE LESSER OF ABOVE AND ACTUAL RENT RECEIVABEL (WITH VACANT PERIOD)
(NOTE THE ABOVE DATA TO BE TAKEN FROM THE PURCHASE)
FOURTH STEP
HIGHER OF THIRD STEP 96000 (12*8)
LECC VACANT PERIOD 60000 (12*5)
GROSS ANNUAL VALUE 36000
LESS MUN. TAX 0
ANNUAL VALUE 36000
YOU COMPARE MUNCIPAL VALUE AND FAIR RENT
SECOND STEP
COMPARE HIGHER OF FIRST STEP AND STANDARD RENT
THIRD STEP
COMPARE LESSER OF ABOVE AND ACTUAL RENT RECEIVABEL (WITH VACANT PERIOD)
(NOTE THE ABOVE DATA TO BE TAKEN FROM THE PURCHASE)
FOURTH STEP
HIGHER OF THIRD STEP 96000 (12*8)
LECC VACANT PERIOD 60000 (12*5)
GROSS ANNUAL VALUE 36000
LESS MUN. TAX 0
ANNUAL VALUE 36000
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