Taxation of 2 apts in income tax return

Dear Sir,

 

I stay in Bangalore. I own two apartments. One of them is 20 kms and other is 35kms from my workplace. Hence, to avoid time spent in traffic, I stay in a rented apt near my workplace. I've availed tax benefit on the rent that I pay for the apt where I'm currently staying. Both of the apts owned by me are lying vacant and hence fetch no rental income.

How can I fill the income from house property section of ITR2 ?

What is the optimal way to deal with this situation, to have minimum tax outgo.

Please suggest at the earliest. It is urgent. 

 

Replies (4)
One apartment will be considered as SOP so no tax

Second one will be under notional income basis where you have to estimate rent fetching capacity and show that under IFHP.
Of course you get deduction of local taxes paid as well as 30% flat towards repairs from that notional rent.
Balance is taxable.
Out of the Two Apartments, One House will be considered as SELF OCCUPIED PROPERTY, whose Annual Value will be NIL.

For the Second House Property, you have to consider the Notional Income and will be taxable. However as said by Kapadia Sir, you will be allowed to claim a Standard Deduction of 30% of NAV u/s 24(a) of the Income Tax Act 1961 and also the Interest on Borrowed Capital, if any u/s 24(b) of the Income Tax Act 1961.

Couple of more queries:

1. But how about the income tax benefit on the rent paid on my current rental accommodation near to my workplace ?

Do I need to forego that benefit and pay it in the final ITR2 though it appears as a deduction in Form-16 ?

2. The second apartment on which notional income is required to be shown and tax paid on it, Will that apartment be declared as "Deemd let out" property or "let out property" in the ITR2 form ?

3. Also, since only three month's notional rent is required to be shown as income, it will certainly be a small income. How to fill that value in the ITR form, so that it is not mistaken as the Annual notional income for 12 months, and hence, appear as as a fraud number to Assessment officer just to evade tax.

 

Please suggest. It is urgent.   

 

Couple of more queries:

1. But how about the income tax benefit on the rent paid on my current rental accommodation near to my workplace ?

Do I need to forego that benefit and pay it in the final ITR2 though it appears as a deduction in Form-16 ?

2. The second apartment on which notional income is required to be shown and tax paid on it, Will that apartment be declared as "Deemd let out" property or "let out property" in the ITR2 form ?

3. Also, since only three month's notional rent is required to be shown as income, it will certainly be a small income. How to fill that value in the ITR form, so that it is not mistaken as the Annual notional income for 12 months, and hence, appear as as a fraud number to Assessment officer just to evade tax.

 

Please suggest. It is urgent.   

 

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