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Income tax

13 October 2020

During assessment year 2020-2021, tax payer owns two residential flats, one in Bangalore and second in Hyderabad. He is staying in his Bangalore flat, and his Hyderabad flat is kept locked (neither self-occupied or rented out). Whether he has to add any lettable value for the unoccupied flat to his taxable income? And which ITR form should he file for AY 2020-2021?

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9 Replies

rama krishnan (12234 Points)
Replied 14 October 2020

Yes.. though it's not let out, it should be considered deemed let out and offered to tax

1 Like

K.V.Krishnaswamy (Retired) (39 Points)
Replied 14 October 2020

Thanks Sir. Which ITR Form should be used to file return? And deemed rent means market rent or anything lesser, since no rent is earned on the locked/vacant flat?

Nidhi (Chief Accountant) (3150 Points)
Replied 14 October 2020

Not required to add any let out value.
You can show both properties as Self occupied property
(with effect from F.Y 2019-20, two Self occupied property allowed)

2 Like

K.V.Krishnaswamy (Retired) (39 Points)
Replied 14 October 2020

Many thanks for the clarification, Madam. In such case, which ITR form to be filed, either ITR1 or ITR2A?

Nidhi (Chief Accountant) (3150 Points)
Replied 15 October 2020

You are salaried employee or having business ?
if No business incomes than ITR2,
otherwise ITR 3/4 a the case may be

K.V. Krishnaswamy (2 Points)
Replied 15 October 2020

I am a retired person drawing pension. Other than pension, I earn interest on term deposits invested in banks. Other than that, I earn a small amount as dividend on Shares, which I am holding for several years. Both pension and interest are fully reflected in my Form 26-AS.