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Income from two properties

Rajat (manager) (42 Points)

16 March 2013

Hi,

I had few questions about this year income Tax Filing. I hope experts are able to help me out.

I am an IT professional working for a leading company. Following are the souces of my income

1)Income From Salary

2) Income from Shop Given on Rent

3)Income from a commercial space given on rent

No loans are there against the property mentioned in 2 and 3

Now my questions are

A) Which ITR category form should i fill up for the AY13-14 (ITR1, ITR2 etc) and Why ?

B) For Income from 2 & 3 . Can I reduce tax liability by showing municipal tax paid

C) Can I claim standard deduction of 30% rental income for Income from 2 & 3.

D) Any Other ways in which I can save tax for Income from 2 & 3.

Thanks in Advance,

Rajat

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4 Replies

Asif Khan (Taxation executive) (410 Points)
Replied 16 March 2013

Dear Sir

Answers to you questions

Ans 1. You have to File ITR 2 for Ay 2013-14 as you have income from more than one house property.

Ans 2. You can claim deduction of Muncipal taxes on both the properties.

Ans 3. You can Claim standard deduction @ 30% of NAV, U/s 24(a) on both the properties.

Ans 4. As per my view there is no other way except to claim loan interest deduction U/s 24(b), but you mentioned you have not taken any loan on any of the properties.

Hope its clear

Mihir (Wealth Manager) (5293 Points)
Replied 16 March 2013

A. ITR2

B. Yes

C. Yes

Rajat (manager) (42 Points)
Replied 16 March 2013

Originally posted by : Asif Khan
	Dear Sir Answers to you questions Ans 1. You have to File ITR 2 for Ay 2013-14 as you have income from more than one house property. Ans 2. You can claim deduction of Muncipal taxes on both the properties. Ans 3. You can Claim standard deduction @ 30% of NAV, U/s 24(a) on both the properties. Ans 4. As per my view there is no other way except to claim loan interest deduction U/s 24(b), but you mentioned you have not taken any loan on any of the properties. Hope its clear

Thanks Asif. Is it NAV (Net Asset Value) or Rental Income?

Asif Khan (Taxation executive) (410 Points)
Replied 16 March 2013

Dear Sir,

It is not Rental income, its NAV (Net Annual Value) which we get after deducting Muncipal Taxes from GAV( Gross Annual Value). GAV would be higher of the following. 1). ALV( Annual Letting Value) or 2.) Actual Rent recived or Recievable during the year. ALV is the higher of Fair Rent and Muncipal value but restricted to Standard Rent.

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