Saving tax on rent income

187 views 3 replies

Hardik

25 Points Posted on 30 August 2017

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

9920881098

Replies (3)

Giridhar S Karandikar

Team Lead

7558 Points Posted on 30 August 2017

please note that income from house property is chargeable in the hands of the owner of the house property. so you can let it out to the tenant. you can claim deduction towards municipal taxes paid from the rent received and on the balance 30% standard deduction can be claimed. if there's any home loan taken then interest upto 150000 can be claimed.
as far as your query regarding sub let of your property by your uncle it wud be taxable as income from other sources

neeraj gupta

1138 Points Posted on 31 August 2017

You cannot use the nominal rent trick, because the annual value of the house will be considering municipal vaule and rental value of surrounding similar properties. There is a PDF published by IT dept for Income from House Property.

Anand Yerra

2 Points Posted on 02 September 2017

If you let out a house at nominal amount which is lower than municipal value then you will need to consider muncipal value as gross annual value from that you can claim municipal taxes whatever you paid in this year and 30% deduction and interest on housing loan if any