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Advise required it calculation & necessary declaration

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Abhijeet

Consulting

24 Points Posted on 28 June 2012

Hello,

I am going to rent out my flat from July 2012 @ monthly rent of Rs. 11000/- . I will be moving to stay at my father's new house, House is in my father's name. I had stayed in own my flat for 3 months i.e; April, may & june. The property tax to pay is around 8700/- per annum.

I have a house loan taken & taking benefit of Rs. 150000/- for Interest on House loan for tax exemption purpose where in my actual interest on house loan comes to 169000/- presently.

Please advise on further tax calculation and necessary declaration to be made to avoid any tax liability.

With Many thanks,

Abhijeet Mahajan

Replies (1)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 28 June 2012

Your house property will be considered as let-out property & the Gross Annual Value for teh eyar would be 11000*9= 99000. However if the Annaul lettable value is more than the GAV, then the ALV sould be consdiered as Gross Annual value. the deduction for municipal taxes can be paid, if they actually paid. You will also ger the deduction of the whole interest paid & also 30% Std Ded. Your income from HP would be as follows:

GAV 99000

Less:MT Paid 8700

Net Annual Value 90300

Less: 30% Std Ded 27090

Interest on Loan 169000

Loss from House Prop -105790

this loss you can set-off against your salary/business income