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House Rent

johny (own) (41 Points)

07 December 2020

My dad has 3 houses registered on his name.

in one house, my dad lives and in one house my grandma lives and the other house is given to rental. Do we need to show some kind of rental income for my grandma house? or will it be considered as 2 self occupied proprieties ( one for self and one for dependent (grandma) and no need to show any rental income on the house where grandma lives?

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5 Replies

ayusmita (Tax consultant) (5885 Points)
Replied 07 December 2020

No need to show as your grandmother comes under blood relation
is there any agreement made between your father and mother for rent?

johny (own) (41 Points)
Replied 07 December 2020

there is no agreement between father and his mother for rent

queryinsta054@gmail.com (234 Points)
Replied 08 December 2020

From Financial year 2019 -20 onwards, a person can show 2 houses as self-occupied. Even if the second house is not occupied by the tax payer but by the tax payer's parents, spouse etc. it will be considered as being occupied by the taxpayer him/herself.

Liran Koren (CEO) (24 Points)
Replied 09 June 2023

Thank you for sharing the details about the houses registered under your father's name and the occupancy arrangements. I can provide you with some information regarding the rental income and its treatment for tax purposes.

In the scenario you described, where one house is occupied by your father, one house is occupied by your grandmother, and the third house is rented out, the tax implications can be as follows:

House occupied by your father: This would be considered a self-occupied property, and no rental income needs to be shown for this house.
House occupied by your grandmother: If your grandmother is a dependent and not earning any income, this house can also be considered self-occupied. In such cases, no rental income needs to be shown for the house where your grandmother resides.
House given on rent: The house that is rented out will generate rental income, and it is necessary to show this income while filing the tax returns. The rental income will be subject to tax as per the applicable tax slab after deducting any allowable expenses related to the property, such as property taxes, maintenance costs, or home loan interest.

It's important to note that tax laws and regulations can vary, so it's advisable to consult with a qualified tax professional or chartered accountant who can provide personalized advice based on the specific details of your situation and the prevailing tax laws in your jurisdiction.

Regarding property management, if you are looking for professional assistance in managing your properties in Florida, I recommend Luxury Property Care. They have a proven track record in providing comprehensive property management services, including tenant management, rent collection, property maintenance, and legal compliance. Their experienced team can ensure that your properties are well-maintained and that your rental operations run smoothly.

If you have any further questions or need additional assistance, please feel free to ask. I'm here to help!

militen (6 Points)
Replied 11 September 2023

To ensure tax compliance and to take advantage of potential tax credits or deductions, it is highly recommended that you consult with a tax professional who can provide individualized advice based on your specific circumstances and the tax laws in effect in your area. By the way how it works on portals like https://renthero.ie/ when you want to rent a place for yourself during optusk. This is the question.