30 May 2013
If I have let out my property at my home town for which I am receiving annual rent of Rs.300000/-. I am also paying municipal tax for the said property of Rs.10000/- from my own bank account. I have taken a loan for the said property and for which I had paid Rs.500000/- towards interest & Rs.150000/- for prinicipal during the year.
What will be the actual loss? You are requested to give the detailed calculation.
30 May 2013
(Gross Annual)value of the property= Rs.300000 Less:-Muncipal Taxes =Rs. 10000 Annual Value of the property=Rs.290000 Less:- Repairs/Collection charges restricted to 30% of the annual value of the property irrespective of the amount spent or not =Rs. 87000 Less:- Interest on borrowed capital =Rs.500000
Property Income/(Loss) =(Rs.297000)
Since the property is let out whole interest on borrowed capital is deductible.
CAclubindia
