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House for income tax caluclations

eTaxMentor (employee) (217 Points)

20 December 2012

I am having one house on my father name which is given for rent and one more house on my name in which we are staying. The rented one gives more rent than the other one where we are staying. Can I show the 2nd house for income tax caluclations
leaving the rented one .

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10 Replies

Ankit a shah (Internal auditer) (92 Points)
Replied 20 December 2012

As per my thinking u cant calculated tax House of income where u saty.

Rented house u can calculated as House of income

Nilesh Koparde (Hardwork is a key of Success...) (678 Points)
Replied 20 December 2012

I think so u can cover under SOP(R) & ur father cover under LOP & both are assesee...

But calculation of income is different for each other.

satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 20 December 2012

The property on the name of your father is calucated at GAV by considering the Fair rental value , standard rent , actual rent ....and municipal taxes are allowed as deduction he can even take standard deducted, interest on housing loan....

However the property which is in your name is sop whose GAV is taken as nil...expect housing interest no other deduction are allowed, interest is subjected to RS. 30000/- or Rs .150000/-.as the case may be..

CA MANISH AGRAWAL (Practice) (539 Points)
Replied 20 December 2012

As per my suggestioin the house in ur father name and the house which is in ur name ,the house which is show more income ,it show as self occupied and other to rented house.it is matter of tax planning to save taxes and it also ur option which u wantt to show as S/o or rented.

Deepak (to be a chartered accountant) (141 Points)
Replied 20 December 2012

Yes, u can show, but one thing u dont need to differientiate with ur father income.

amitkrgp (TO BE CA) (21 Points)
Replied 24 December 2012

SUGGEST WHETHER LONG TERM AND SHORT TERM GAIN

I HAVE PURCHASE A VACANT PLOT IN THE YEAR A.Y 2001-2002 FOR RS. 100000.00

MAKE IMPROVEMENT IN THE YEAR A.Y 2010-11 RS. 150000.00

ANOTHER IMPROVEMENT IN THE YEAR A.Y 2011-2012 RS. 260000.00

AND MADE SALE OF PLOT AND BUILDING CONSTRUCTION THEREON BY RS. 726000.00 IN THE A.Y. 2011-12

NOW I HAVE TO FILE MY RETURN THE A.Y 2011-12, SUGGEST WHETHER THERE IS ALL LTGS OR THERE IS S.TERM ON IMPROVEMENT IF THERE, THEN HOW WILL IT PROPONOTIATE.

Nilesh Koparde (Hardwork is a key of Success...) (678 Points)
Replied 26 December 2012

i think there will be a long term capital assets..

kavitha (studying final) (830 Points)
Replied 26 December 2012

as the holding period is greater than 36 months it is a Long Term Capital Asset... as we all know, for we can avail indexation in case of long term capital assets.

sale consideration--726000

less: expenses on tr---if u have any deduct that gives net sale consideration

less: indexed cost of improvement = 150000*711/632

= 260000*711/711 ( i dont this step is correct or not)

net is long term capital gain /loss

correct me if i am wrong

CA Mukesh Kedia (Chartered Accountants) (44 Points)
Replied 27 December 2012

No doubt there is long term capital gain,but for calculating CG we will cosider indexation on cost of vacant land only. Cost of improvement is for less than 36 months thus , no indexation is required for such part of capital asset.

CA Mukesh Kedia (Chartered Accountants) (44 Points)
Replied 27 December 2012

Originally posted by : eTaxMentor
	I am having one house on my father name which is given for rent and one more house on my name in which we are staying. The rented one gives more rent than the other one where we are staying. Can I show the 2nd house for income tax caluclations leaving the rented one .

As per the provision of income tax , to be taxable under head house property, the assessee must be legal owner.In your case house property is in your name (not traf by your father+ you are not minor)then GAV shall be NIL and deduction of housing intrest if any shall available.Propert in the name of father, which is rented shall be taxable in the hand of your father as per normal provisions of income tax act.