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Doubt regarding income from house property income tax

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Guest

Mr. J has a house the construction of which was completed in November 2008.

The House was let out for rent of Rs.9000 per month.

On 01.04.2006, J borrowed a loan of Rs. 3,00,000 @ 18% interest for the construction of above property.

On 30.11.2008, he borrowed a loan of Rs.2,00,000 @ 15% interest and utilised the amount along with the security deposit from tenant of Rs. 1,00,000 and repaid the original loan.

Property taxes paid is Rs. 15,000.

Compute the income from house property for AY 2012-13.

Please give me a detailed solution....

Replies (1)

Chiranjeevi Chintala

Account Assistent

58 Points Joined June 2012

For AY 2009-10

Pre-construction period interest (from 01-04-2006 to 31-03-2008) (300000*18%*2) = 108000.

1) For each year 108000/5 = 21600.

2) Interest for the previous year 2008-09

· from 01-04-2008 to 30-11-2008 – 300000*18%*8/12 = 36000

· from 01-12-2008 to 31-03-2009 – 200000*15%*4/12 = 10000

3) Total interest for AY 2009-10 = 21600+36000+10000 = 67600.

For AY 2012-13

Particulars	Calculation	Amount Rs	Amount Rs
Gross Annual Value	9000*12		108000
Less: Muncipal Taxes			15000
Net Annual Value			93000
Less : deduction u/s 24(a)	93000*30%	27900
: Interest u/s 24(b)	Note	51600	79500
Income from House Property			13500