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2nd home exemption on notional rent

28 July 2019

Hello,

what is the rules,regulation related to exemption of notional rent for 2nd home being owned , that it's outlined in budget 2019?

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (195011 Points)
Replied 28 July 2019

It can be taken as NIL, from AY 2020-21 onwards.

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Sansari P (6 Points)
Replied 28 July 2019

thanks sir,is there points to note? same city different city?can I keep it without rent or using it for self?

Kapadia Pravin (17264 Points)
Replied 28 July 2019

Yes can keep vacant or using for self

Ayush Agrawal (Owner) (22 Points)
Replied 05 December 2019

Hi. I have a second home that is currently rented, but I would like to end the tenancy in January 2020. I have 2 questions.

(1) On the actual rent received from April 2019 to January 2020, I will pay tax as Income on House Property (with the standard 30% deduction). For the remaining period from January 2020 to March 2020, can I treat the second home as self-occupied and be exempt from any notional rent?

(2) On my reading of the Income Tax Act section 23, it it unclear if the exemption of the second home from notional rent is applicable from FY2019-20 or FY 2020-21 onwards. Any clarification would be very helpful.

Thank you and Regards,