Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Property tax in calculating income from house property

629 views

Save Share

Mamatha hra

40 Points Posted on 12 October 2021

if assessee receiving rent from rental property every year. due to covid he didn't received rent during the FY 20-21 but paid property tax, can we consider only property tax paid expenses to calculate income from house property.

i thinking without rental income we can't show expenses, is it right.?

if we considered property tax then loss will come under income from house property and need to set off that against income from other head right?

please suggest can we consider property tax to calculate income from house property.

Replies (2)

Quick Summary

This discussion explores whether property tax paid can be deducted when calculating income from a house property, particularly if no rent was received during the financial year due to circumstances like COVID-19. The consensus is that property tax is generally deductible if the property is let out or deemed let out. Even with a loss of rent, the property tax can still be considered, potentially creating a loss that can be set off against other income. However, the specific rules might apply differently to commercial properties compared to residential ones.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 13 October 2021

Yes, you can consider property tax paid when the house it actually rented or deemed rented.

Due to Covid-19, there can be loss of rent due to un-ralization, but that cannot be more than 2/3 months.

Mamatha hra

40 Points Posted on 21 October 2021

Then can we take property tax if assessee has not received any rental income complete whole year, if yes. act says if any property let out for whole year then it'll consider as self occupied property but in this case property is not a residential. it's a commercial hotel building and assessee had not received any rental income from that,