Hi there, I have a query as follows.
Lets say, a Person has TWO Properties.
One is Self-Occupied and the other is let-out to a Company.
The monthly Rental income (Lease) from the company is Rs.75,000/-.
I understand that as per Indian Tax Laws, ANY ONE OF THE PROPERTY can be offered or shown as Self-occupied (SOP) and other as deemed to be let out (DTLO).
Example: Lets says, the fair rental value of Self Occupied property is Rs.10,000/- and the rental income from lease to company is Rs.75000. Tax will definitely be higher if one shows the rental income from company.
I was thinking if one shows the leased house as Self-occupied (as permitted by IT Laws) and the Self-occupied as deemed to be let out, one can save huge amount by way of taxes.
Kindly, let me know, if i am right in my understanding.
Also, the choice of SOP and DTLO is it only for individual tenants or also for Company tenants.
Many Thanks in Advance.
CAclubindia
