House property

any ove of ur choice will be required to offer for taxation

means whoes rental income will be less ned to added in ur income

If an assessee owns more than 1 house, then one house according to his own choice will be considered as Deemed to be let out property & will have to offered for taxation.  The fair municipal value will be taken for calculating the rent amount.  However you will be eligible for deduction towards municipal taxes paid on the rental value & on the balance you will be eligible for 30% standard deduction.  On the balance you will be required to pay tax if your total income crosses the basic exemption limit of Rs. 1.8lacs

Agreed with Giridhar. FR of any one House Property will become Taxable.

It means that even I do not derive any INCOME , I have to Pay TAX.       Can't I get benefit of vacancy allowance, since the property remain vacant throuhout the year?

no there is no such allowance called vacency allowance

But, Sir How would you react to the remarks made by Housing Finance Institution:

"There are other tax advantages while investing in a second home. If the second home is let-out for a minimum period of 300 days in a calendar year, it is exempt from wealth tax. Moreover, tax liability arises only when the rent is actually received. If the second home remains vacant or rent becomes unrealizable due to non-payment by the tenant, there would be no income tax liability. This is because tax is payable only in respect of rent received."

But, Sir How would you react to the remarks made by Housing Finance Institution:

"There are other tax advantages while investing in a second home. If the second home is let-out for a minimum period of 300 days in a calendar year, it is exempt from wealth tax. Moreover, tax liability arises only when the rent is actually received. If the second home remains vacant or rent becomes unrealizable due to non-payment by the tenant, there would be no income tax liability. This is because tax is payable only in respect of rent received."

Dear Rishi,

The finance institution's remark is correct.

The concept of vacant  allowance would come only if the house property is let out. If there is no let out then it is called self occupied.

1. You have a choice of choosing one as self occupied and another one is deemed let out. You can choose a house property having lesser annual value as let out.

2.The notional income of house property is taxable in your hands.

i agree with Giridhar S Karandikar

Dear Sultan,

Thank you so much for your valued opinion.Now the position is cleared. Thank you all.

Rishi