Can a singly owned property be declared as self occupied while having a joint property already
This query is : Resolved
31 March 2023
I hold a joint property with my wife where we are residing. Wife is planning to have another property registered on her name only in same city.
Can she show that singly owned property as self-occupied while filing returns without any tax implications?
Can she show that singly owned property as self-occupied while filing returns without any tax implications?
31 March 2023
Yes. She is eligible for that.
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31 March 2023
She can't.
Inference :- https://incometaxindia.gov.in/tutorials/12.%20income-from-house-property.pdf
Inference :- https://incometaxindia.gov.in/tutorials/12.%20income-from-house-property.pdf
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31 March 2023
Tax implication of more than one house property occupied for residence purpose.
The SOP benefit (i.e., treating property as SOP and claiming GAV as Nil) is available only when property occupied by the owner for his residence or it is not occupied by the owner owing to employment or business or professional at any other place.
If a person has more than one such property, then the SOP benefit will be granted only in respect of any one property as selected by him and other property/properties will be treated as “Deemed to be let-out”. Income from deemed to be let-out property is computed in the same manner as discussed in the case of “Let-out” Property.
However, with effect from Assessment Year 2020-21, a person can claim two properties as self occupied house properties.
Extract from: the reference provided above... Page 9; Pera. 2 ...
The SOP benefit (i.e., treating property as SOP and claiming GAV as Nil) is available only when property occupied by the owner for his residence or it is not occupied by the owner owing to employment or business or professional at any other place.
If a person has more than one such property, then the SOP benefit will be granted only in respect of any one property as selected by him and other property/properties will be treated as “Deemed to be let-out”. Income from deemed to be let-out property is computed in the same manner as discussed in the case of “Let-out” Property.
However, with effect from Assessment Year 2020-21, a person can claim two properties as self occupied house properties.
Extract from: the reference provided above... Page 9; Pera. 2 ...
11 April 2023
Thank You Bhaskaran Sir & Dhirajlal Sir.
So if I summarise correctly, as per changes since AY 2020-21 max 2 properties can be claimed as SOP legally without any tax implication based on notional rent even if both property are in same city.
Kindly correct me if that is wrong.
Regards
So if I summarise correctly, as per changes since AY 2020-21 max 2 properties can be claimed as SOP legally without any tax implication based on notional rent even if both property are in same city.
Kindly correct me if that is wrong.
Regards
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