Saving tax on income from house rent

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I have a house with one floor. I am planning to let out the ground floor of the house. My tenant will want to claim for the rent he is paying and so i will have to show it as income from house. How can I save tax on this income from rent?

Can I let out this property for a very nominal amount to my Uncle and my uncle sub let out the house to the actual tenant with actual rent?

regards,
Harshad
Replies (3)
U have to offer the income received from letting out of ground floor and u can claim the benefit of munciple tax paid and interest paid for the said house property but restricted to 50% as half of the property is self occupied and half is Let out property.
Also you can let out the property to your uncle and he can sub let out the property to the tenet for actual amount but the amount at which u r giving on rent to your uncle should not be less than the half of the munciple value of rent of the house property.

 HOW TO CALCULATE THE INCOME FROM HOUSE PROPERTY

Rental income received or receivable during the year

Less: 50% of House Tax/Local tax paid such as municipal tax, water and sewage tax, fire tax etc. (on actual payment basis only).

Net Annul Value

Less: 30% standard deductions for repair etc of net annual value

Less: Interest on borrowed capital

balance is Net income from house property

 

Ref: https://www.letslearnaccounting.com/taxation-of-income-from-house-property

thanks a lot for your help


CCI Pro

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