Self Occupied exemption

This query is : Resolved

obeid (Querist)
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02 August 2010 Salaried Individual having one house only which has been let out.He has not claimed HRA because he is staying in his fathers house. I want to know weather he has to pay tax on Income from HP or claim as self occupied exemption?

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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02 August 2010 HE HAS TO PAY TAX ON LET OUT PROPERTY , IF HE SHOWN IT IS LET OUT AND RECEIVED RENT BY CHEQUE AND THERE IS AGREEMENT BETWEEN TENANT & HIM,

IF HE IS RECEIVING CASH AND THERE IS NO AGREEMENT , I.E NO LEGAL PROOF, THEN HE MAY CLAIM PROPERTY IS SELF OCCUPIED BY HIM.

I.E AS PER LAW, HE HAS TO PAY TAX.

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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02 August 2010 Where there is receipt of rent on a let out property, such income will taxable under the head 'Income from House Property' subject to deductions available.

Assessee owning only 1 property doesnot qualify for exemption. Rent received is always taxable.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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02 August 2010 Receiving Rent is taxable under Income tax we will not avoid the same at the same time for tax savings purpose you may enter rental agrement with father and show rent and claim the HRA

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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02 August 2010 agreed with experts,
& good advice from rameshji, he can calim hra by do agreement between him & his father.

obeid

obeid (Querist)
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04 August 2010 Thanks all
Rent will be taxable in fathers IT if there is an agreement between them. so I think its better to pay tax by including rental income also.

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