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Income from house property

ITR 230 views 5 replies

Vunu

Developer

135 Points Joined February 2018

I owe house and receive rent from tenant. (All figures on yearly basis)
(A) Rent = 180000
(B) PMC Tax = 6500
(C) Society Maintenance = 18000
My question is : What will the INCOME FROM HOUSE PROPERTY?
Will it be
[A - 30%A - B - C] = 180000 - (180000*30/100) - 6500 - 18000 = 101500
OR
[A - B - C - 30%(A-B-C)] = 180000 - 6500 - 18000 - ((180000-6500-18000)*30/100) = 108850

Is first option correct or second option correct or is there any other formula?

Replies (5)

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

What is society Maintenance?

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

Except Society Maintenance....

IFHP = A - B = 173500 * 30% = 52050 - 173500 = 121450

Vunu

Developer

135 Points Joined February 2018

Society Maintenance is the amount which we need to pay to the society (apartments).

Thank you for your answer.

RAJA P M

"Do the Right Thing...!!!"

128147 Points Joined January 2015

You are welcome... ...

Bhavesh Jain

63 Points Joined February 2018

The following is method by which you determine the income from house property ( for let out property)

GAV ***
(-) municipal taxes. (***)
NAV. ***
less deductions u/s 24
24(a) standard deduction of 30%. (***)
24(b) interest on housing loan. (***)
income from house property. ***

to determine GAV

(a)fair rent ***
(b)municipal valuation. ***

whichever is higher ***
(c) standard rent. ***

whichever is lower. ***
(d) annual rent /actual rent. ***

whichever is higher. ***(GAV)