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Income tax on house property for receipt of garage rent

Tax queries 957 views 2 replies

Dear Sir ,

My question is related to tax on income from house property 

My friend stays in an inherited joint property with other family members. He also owns a 2bdr flat where he visits every month and stays for a couple of days. Though the flat is not occupied by any tenant , the garage has been given on rent  and the monthly rental amount is almost the same as the monthly maintenance charges payable by my friend  to the society of the housing complex. Since there is no rental receipt of this flat and garage rent receipt and monthly maint charges are almost same , income from house property is shown as nil. Apart from the monthly maintenace charges , some annual maint charges and Coporation taxes are also paid for this property. 

Under such case, is there any tax liability ( income from house property) for the 2br flat  and if so , what will be a guideline on computation . 

Looking for a reply 

Thanking you

S Mukherjee 

Replies (2)

The house property should be declared as Self Occupied, and any excess of income from the garage be assessed under IFOS.

you cannot adjust the maintenance charges paid with the garage rent receipts. the garage rent is your income from letting house property and you will be allowed statutory standard deduction of 30% therefrom. remaining is your income from house property. you can also deduct municipal taxes for the garage area.


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