House Property

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Suresh J Thadani

Senior Partner

34 Points Posted on 26 May 2009

Mr A owns two houses H1 and H2 (both within Municipal limits).

H1 is rented out ONLY FOR A PART OF THE YEAR .The rental income is offered for tax as Inc from HP

The value for Income Tax which would be attachable to H1 (even for a part of the year when the property was not rented) is greater than the value attachable to H2 for the whole year

For IT purposes:

a. Can Mr A treat H1 (the rented house) as Self Occupied (even though it is not rented for a part of the year) as there does not appear be any restriction in the selection of Self Occupied.

That is to say can an assessee claim a property as self occupied even though it is actually rented for the part of the year

b. Can he change his election of SO property from year to year?

Replies (2)

sandhya

68 Points Posted on 26 May 2009

yes a property with higher nav can be opted as self occupied property. there does not seem to be any restriction on choosing different house properties for different years

PiyushAgrawal

Chartered acooutant in practice

418 Points Posted on 27 May 2009

Originally posted by :sandhya
"	yes a property with higher nav can be opted as self occupied property. there does not seem to be any restriction on choosing different house properties for different years	"