Income from house property

Cost of Living????

I think you are missing some thing here..

Rgds

Deepak Goel

I owned a flat in my own (individual) name and lying vacant. At present,  I am residing in another  flat which is owned by my wife (individual) . What is the tax implication of my own flat ? Can I claim housing loan interest exemption in my return ?

Thanks

NOBODY IS THERE TO GIVE ME A REPLY ?

I am afraid there is nothing called cost of living that you can claim. Pls rephrase ur question : its not very clear what you wish to ask?

@ Goutam as per the IT Act 1 property of an individual ( which is sop) is exempt from tax. As far as interest in concernd u can tak exemption in this regard

Sir,

If your property is lying vancant, and that is the only property in your name, then you wouldn't have to pay taxes. But since your property is on rent your income is chargeable to tax. Your computaion will be as follows

Actual Rent is say Rs. 200000 per annum

Muncipal Value is say Rs. 150000 Per annum

since actual rent is higher your your  Gross annual rent will be Rs. 200000

Less: Municipal Taxes Paid(say)Rs. 40000

Please keep in mind that M.Tax is on payment basis and not accrual basis

Net annual rent is 200k-40k= Rs. 160000

Less: Standard deduction @ 30 % i.e. Rs.48000

Less: Interest on loan (say) Rs. 40000

Income from House Proerty= 160k-48k-40k= Rs. 72000

keep in mind that interest  on loan taken for construction, purchase or capital addition to ur house property will only be deductible

Hope this has helped you