Income on vacant and unrented house property

I have a 2nd house, which is vacant and I have not given it on rent either.

 

Do I still have to consider FULL EXPECTED RENT in income from house property?

 

Since house is 2nd house as per rules it is "DEEMED LET OUT"

 

Now as per Chapter 2 of tax payers Information series - 17:


Benefit for vacancy for the period when the property
remains vacant (in cases of let out proporties).


If due to vacancy, the annual rent received is lower than
the expected rent, then the annual rent realized is taken as the
gross annual value. However, this rule will be applicable only,
if the decline is only because of the vacancy.


 

Can I take benefit of this clause? Claiming that even if it is not really let-out, it is deemed let-out and hence vacancy clause still applies? i.e. zero income is earned.

 

Thanks.

Replies (6)

Forgot every thing you should charged deemed rent as per your locality rate which is maximum. but you should charged minimum level as its your deemed income.

for example : In X city rent is around rs.5000-6000 pm then in this case deemed rent should be around Rs.2000-3000 pm.

 

Sorry I did not understand your reply properly.

Here is another point from internet. tax mann


Clause 26 - Scope of gross rent

2.17 ...

2.18 As per the notes on clauses as indicated in the Bill, the said clause also provides that :

Where such property was vacant during any part of the financial year, the gross rent shall be the amount of rent received or receivable for such part of the financial year for which the house was not vacant.


So as per above "rent received" when house was NOT vacant would be zero.

 

 

Please read my previous opinion again.

 

See, Gross rent is Maximum Rent chargable in you locality or area... but from my point of view its very hard rule on common people therefore we required to show minimum rent receivable because as we are not receiving any rent its deemed rent and we are paying tax on it. hence, we required to show minimum rent receivable.

I understood that

 

But my point is: Can I claim "Benefit for vacancy period"? As per exception I said in first post.

 

Or should I rent it out for 1 month and show 11 month vacancy?

Yes, You can get the benefit of Vacancy Period provided that you have make Assessing officer in confidence that you have made agreement with tanant, if any scuritiny arises in future date. 

in this case it will not be Deemded let out property.

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