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House Property

Debasish Dey (IPCC) (151 Points)

04 February 2011

Suppose Mr.X has 2 house properties and both are self occupied..Now one of these will be deemed to be let out..But if Mr.X tells that the house was vacant throughout year then there will tax saving..Now my quary is that how can INCOME TAX DEPT. know that the house was not vacant rather self occupied????

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9 Replies

KORGAONKAR ASSOCIATIES (pratice) (118 Points)
Replied 04 February 2011

vacancy clause not applicable to sop

Manmohan ACA, CS (Chartered Accountant ) (14243 Points)
Replied 04 February 2011

if you say one was self occupied and other was vacant the vacant will surely be treated as deemed to be let out then you don't have option to make any one self occupied , the vacant will compulsorily will be treated as deemed to be let out !!

1 Like

Pankaj Arora (Learner) (3134 Points)
Replied 04 February 2011

Agree with Mr. Manmohan.

1 Like

CA Prateek Garg (CA in Practice) (1444 Points)
Replied 04 February 2011

How u will get the tax saving

In both cases u have pay tax on one house of your own choice

However u can get a tax saving if u think it another way

Suppose Mr. X own 2 houses 1 is self occupied & other is let out

Now if rent received by him is more than fair rent of either house then he can show the both house as self occupied. Now by if house with lower fair rent is deemed to be let out u will get a tax saving

But it is not advised to do so as it will be considered as Concealment of income & not tax planning

1 Like

Anand (system engr) (28 Points)
Replied 05 February 2011

Dear All

I had given my duplex on Leave & License agreement for 22 months

for reputed Ltd company in Nagpur.

Recenty co. took-over small company , which they are saying subsidiary co.

& for VAT registration they want NOC from me.

Is it OK to give the NOC?

After vacated duplex will be any problem or in future?

Is there any legarl NOC format?

Waiting for your favourable reply.

Regards,

Anand

1 Like

C.A Tarun Shah (practice) (271 Points)
Replied 05 February 2011

Dear Anand according to me avoid doing all these type of transaction as if that person makes any default then dept.will catch you as the address is of yours property

nirmal jain (student) (75 Points)
Replied 05 February 2011

Dear Anand, as per my opinion there is no any problem. NOC is required only for registration and if u want u can mentioned in NOC that the said property is on leave and the period of agreement so in future u r not liable for any misconduct from them.

CA Shammi Prabhakar (Managing Director) (2076 Points)
Replied 06 February 2011

Originally posted by : Manmohan
	if you say one was self occupied and other was vacant the vacant will surely be treated as deemed to be let out then you don't have option to make any one self occupied , the vacant will compulsorily will be treated as deemed to be let out !!

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 06 February 2011

Originally posted by : Anand
	Dear All I had given my duplex on Leave & License agreement for 22 months for reputed Ltd company in Nagpur. Recenty co. took-over small company , which they are saying subsidiary co. & for VAT registration they want NOC from me. Is it OK to give the NOC? After vacated duplex will be any problem or in future? Is there any legarl NOC format? Waiting for your favourable reply. Regards, Anand

better make a seperate receipt for one month which will serve his purpose, but continuation of such receipts will drag u in legal complications, as u are not aware of the 2nd company status and their debts.