House Property

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50 Points Posted on 10 March 2011

If an assesse have two residential house property.

1. Used for own residential purpose.

2.Idle and even not given on rent and it is locked for whole year (purchased for price appreciation purpose)

Whether Second house is taxable as "Deemed to be let out"?even empty for whole year?

Replies (10)

Posted on 10 March 2011

Yes.

One of the house property would be considered as “deemed let out” based on

Assessee’s choice & its Annual Value would be taxable under House property income,

[even if it is locked & not rented for the whole year],

this is becoz...

what is Taxable under House Property Income is not the “Rent Income”

but the “Annual Value” of the House Property.

CHARTERED ACCOUNTANTS

570 Points Posted on 10 March 2011

Yes.. Agreed with Mr. Sunil Ahir.

CA FINALIST

324 Points Posted on 10 March 2011

I too agree with Mr. Sunil but would like to add one more point that you should choose the House showing lesser HP income.

Towards Professionalism

616 Points Posted on 11 March 2011

Originally posted by : Sunil Ahir
	Yes. One of the house property would be considered as “deemed let out” based on Assessee’s choice & its Annual Value would be taxable under House property income, [even if it is locked & not rented for the whole year], this is becoz... what is Taxable under House Property Income is not the “Rent Income” but the “Annual Value” of the House Property.