Is it mandatory to show rent received even if not

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sunil

test

23 Points Posted on 07 December 2012

Is it mandatory to show rent received on house even if rent is not actaully received.

- I am from Jaipur and purchased a house (house X) there in 2005. Took a home loan on it in 2005 that is completly settled in 2010. Now, no loan on that house and hence no 80c (principal) and 24 sec(interest) benefit.

- That house is now used by family members and no rental income on that house.

But, As I am in Delhi and enjoy HRA benefit here. Does it mandatory to show rented income on house X?

Is there any rule that the person has to show minimum rented income on circle rate even if no rented income recieved?

I've only 1 house on my name.

Replies (6)

CA CS Chirag

Practicing CA

645 Points Posted on 07 December 2012

yes you need to consider the Notional Rental Income and consider the property deemed to be let out (Even if I don’t receive income from it as rent) while deciding the income from house property.

Bhushan Jaju

Student

488 Points Posted on 07 December 2012

in my opnion no......

Bhushan Jaju

Student

488 Points Posted on 07 December 2012

in my opnion no......

Sandeep

Chartered Accountant

61 Points Posted on 07 December 2012

One view is that if you are showing the property as Self-occupied then you cannot take the HRA benefit. (Assuming that the property which you own and property in which you stay for rent are in the same place/city). In such a situation you need to show notional rental income on the property you own.

On the other side, you can show your own property as self occupied and take the HRA benefit, provided, the reason for not staying in your property is because of the employment outside the city in which your property is located and no other benefit is derived from such property

CA rahul

BCOM(H) ACA

394 Points Posted on 07 December 2012

agreed with sandeep

sunil

test

23 Points Posted on 08 December 2012

Thanks everyone for reply.

My understanding is also same,

"If your property is in one state you can show it as self occupied by parents and you can ALSO enjoy the hra benefit at the same time as person work in some other state due to employment."

Unfornatuly my CA was saying the same that Chirag mention. I need to show notional RENTAL income even if I show it a self occupied". (please note 1 own only 1 house).

If would be great if someone points me to the income tax section that mention that "showing rental income is no mandatory in such case".

Please don't advise to change the CA as that person is friend of mine and it would be great if I'm able to convenience him with the help of this site.

Thanks for reading the post.