House property rent income

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Pratosh

Project Manager

85 Points Joined July 2009

Hi All ,

I have few questions wrt HOuse Property Income by virtue of rent.

NOTE I am asking you wrt to NRI

1. A House Property Owned by NRI is on rent and rent is being deposited by tenant to NRO account.

Is this rental income added to total income to compute standard deduction ?

2. Any maintenance of House propoerty can be available for deduction? I know interest on loan is deductible and so is tax paid to Municipality.

3. in EI section of efiling what income be stated ? only generating inside india in NRE account( which is exempt income) or an NRE can declare his salaried income is generated and being paid overseas in EI section ?

4. How important is to delare house property an plot of land? ( Non agriculture )

5. If an NRI has never filed any return and have purchased property only thru NRI income what impact it may create if it is declared now ? Only buyer agreement and NRE / NRO account thru which payments were made may be available but records may be more than 10 yrs old can noot be retrieved.

Please advise.

Thanks

Replies (2)

mohammad rasool baig

Management Consultant

1026 Points Joined August 2012

1. yes, it will be added to the total income.

2. Any maintenance expenses of house property will not be allowed. There are only 2 deduction & they are U/s 24(a) - standard dedcution of 30% & U/s 24(b) - interest

3. In EI section, we need to declare all the income.

4. I didn't get the query properly

5. If the income is taxable in India then it will be considered as non disclosure of income. Tax+interest+penalty will be applicable.

Pratosh

Project Manager

85 Points Joined July 2009

Dear Mr. Baig,

Thank you so very much for reply .

please note as below for my query as respective serial numbers

1. I undrestood any income generated inside india for an NRI falls in to earned income and later SD is applied.

2. During last year i attended on seminar in and i was informed by a leading consultant that repairs and maintenance is deductible from income from house property -- I know that personality and have my own doubts when he said that however can you please reconfirm ?

3. You have mentioned that in EI section we need to declare all income means as NRI i need to mention what ever i acrue as income in India only or overseas also? I am not falling in DTT so that is not an issue if i have to declare but i assume IT retrun is only for income generated inside India either in NRO account /NRE account or business or OS.

4. In Retrun there is column for house property declaration with details of property and joint holders names and their PAN (optional).. Is it mandatory to mention details of property in there ? self owned as well as inherited ?

5. Correct sir. The income generated out of rent is very very minor to value of property purchased.

Thanks sir for sparing your valuable time and reply. I anticipate you shall give me that time yet again.

Festive season for your you

Eid Mubarak .

Pratosh