Hi, This query is regarding the income from house property. A husband and wife taken a loan to construct an
apartment with 10 flats and rent them out. In the Fin. year 2010-11 they have received 4.51 lacs as rent. They have paid 11474 as municipal tax. and paid455333/- towards loan inclusive of interest of41144. Though loan is taken by the couple, the aprtment is in the name of wife. Pls tel me how much will be income tax to be piad for Asst Year 2011-12 by wife.
Regds
ashraf
Hi, in my opinion since the owner of apartment is your wife it will be her income which will be taxable under the head income from house property by virtue of section 22 of income tax act . And her income will be computed as follows :
Standard rent - you need to get it know from appropriate authority
Actual rent - Rs 451000 (assuming entire rent is being received in her name )
which ever is higher of the above .
assuming it to be Rs 451000
above value will be taken as gross annual value
Gross annual Value = Rs 451000
less : Municiple taxes = Rs 11474(Assuming entirely has been borne by her )
less : interest payment of loan = Rs Her portion of interest wil be subtracted
Equal to : Net annual value
This above net annual value will be taxable normal slab rate of income tax
CAclubindia
