Income from house property

Hi friends,

NRI has one house property in Joint name with spouse.  The flat is vacant and not let out. Will it attract tax as deemed rent.  How will the lettable value be calculated.  

Thanks.

Replies (1)
NRI would be subject to taxes in India on any income accruing or arising from an asset located in India.
 
But in your case house is vacant
Treatment here is similar to a resident. A property which is not rented out is treated as a self-occupied property and the taxable value is NIL. The only deduction available against such property is interest on housing loan up to Rs 2 lakh per year. When there are more than one property that is not rented, then the owner can choose one property as self-occupied and all the other un-rented properties shall bedeemed to be let out, even if not actually let out. For these, the rent that the property would likely fetch is considered as gross rent and all other deductions as applicable for a rented property will be allowed.

Deduction for principal repayment on housing loan can be obtained on all property, whether it is rented, self-occupied or deemed to be let out.

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