Query regarding showing property for income tax purpose

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 April 2012 Dear sir

My father purchased property in my name 1995 .He was paying installments of Rs1400 to avail tax benefit under a scheme.

I have been filing income tax return since five years .three year ago my father expired . Now i am getting this property .

So how can i show this property for income tax purpose. We are residing in another house. if i derive any income from this house how ot will be included in my returns?

Please guide me
Thanks alot

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

28 April 2012 In case the property is in your name you are
the undisputed owner of the property. You may show the property in your Balance Sheet by Crediting your Capital Account and debiting the House Property A/c.
.
You can show the income under the head Income from House Property.
You have to Follow these steps-
.
A . Gross Annual Value(GAV) :
You may compute the income by selecting higher of the two-
1. RER (Reasonable Expected Rent)
2. Actual Rent
If Fair Rent or Municipal valuation (higher of the 2 is RER) is higher than the actual rent , you have to take RER. Otherwise you may take Actual rent as
Gross Annual Value of the Property.
.
B. Net Annual value :
If Municipal Taxes are borne by you , you may deduct from GAV to arrive NAV. In case not paid by you GAV=NAV
.
C. Claiming Deductions
From NAV you can deduct 30% of NAV as Standard Deduction and interest on loan (if it is still being paid by you like your father)
.
The resultant will be Income from House Property.
.

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