Taxation on vacant apartment for a part of the year

Tax queries 225 views 7 replies

Sanjeev

Tax Payer

116 Points Joined April 2019

Dear All,

I've a query on the 2nd apartment that I own. I already have a self-occupied one apartment.

I got the registration of my 2nd apartment done, in the 3rd week of December 2018.

Since that time, it is lying vacant. No interior work (like woodwork and other civil work) is done for that apt.

The rentals in that area are very low, and hence I thought of not investing anymore in the interior works of the apt.

How do I deal with the taxation (income tax) regarding this apartment, which is lying vacant for almost 3 months ?

This query is for AY 2019-20, for which the ITR filing deadline is after 2 days.

Please help.

Replies (7)

Sri77

Others

58 Points Joined July 2013

Hi,

Following might help you. There was another PDF in the income tax site. But now it is asking for username/password.

https://economictimes.indiatimes.com/wealth/tax/how-to-calculate-income-from-house-property-for-income-tax-purposes/articleshow/58528370.cms

Regards

Srivatsan

For AY 2019-2020 you offer notional Annual value calculated for 3-4 months and include it under IFHP.
From this year that is AY 2020-2021 two house properties will be considered SOP and no notional taxation.

Shivam RC

Student

23688 Points Joined November 2017

You have to take it consideration the Notional Value of the 2nd House Property and declare the same in your ITR for AY 2019-20.

From AY 2020-21, TWO HOUSE PROPERTIES can be considered as SELF OCCUPIED HOUSE PROPERTIES.

Warm Regards.

Sanjeev

Tax Payer

116 Points Joined April 2019

While filling the ITR2 form, how do I fill that the 12 month's notional rent is Rs 1,20,000 (Assuming Rs 10,000 pm rent)

and since, the apt's registration was done only in the month of december, the taxable notional rent is Rs 30,000/ -

How do I mention this ?

Else in the absence of this, if I mention that Rs 30,000/- is the annual notional rent, the income tax guys will revert back as to why so low rent is filled (Rs 30,000/12)

Kapadia Pravin

17264 Points Joined December 2018

Do not worry for this.
You have to show for 3 months only bcoz you bought property in December only

Sanjeev

Tax Payer

116 Points Joined April 2019

In the ITR form, nowhere it is required to be mentioned that the apt was registered in December 2018. Hence, I'm afraid that the 3 month's notional income may be treated as that of the total year's. Of course this 3 month's notional income will be much smaller. Hence, it may be suspected by the IT authorities that I'm undervaluing the rental income to evade tax.

So, want to know the correct way to fill the ITR form in this regard.