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Second home tax - min rent declaration during vacant period

Tax queries 452 views 1 replies

Dear Experts,

I have a second home in Bangalore (First home also in the same city which is the Primary home).I am claiming the second home tax benefit.My house is vacant from April to September.From september,2013 the house is on rent till date.I came to understand for the second home even if its vacant i need to declare a minimum rent value as per some guideline.I need help in deciding that min rent value for the vacant period for the year 2013-2014.In this case How i can i conclude the rent value for that period.

Thanks in advance !

Thanks
Suvv

Replies (1)

You have to find out Municipal Value of your home. Which I don't think is possible for you to find. Just look at the rates of similar houses in near by area and compute your taxable rent. In case u want to declare NIL rent for that period in that case u have to prove that u have taken all the reasonable steps to give that house on rent such as giving advertisement in local newspaper, distributing pamphlets etc.

Rohit Gupta

RHT1203 @ gmail.com


CCI Pro

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