09 December 2007
i own 2 properties one is a residential Property where i resides and another one is a commercial property which remains vaccant for last 10 yrs now my question is that can Assesing Officer can treat one of the property as a " Deemed to be let out " or not.
10 December 2007
where a property is kept vacant, there is no revenue generation from that property. therefore, the AO cannot treat the property as deemed let out, moreover, deemed let out is a concept by which, it is a property which u use for your own residence apart from the property already considered as self-occupied. refer sec.23 of Income tax Act.
10 December 2007
AS PER SEC 22 OF IT ACT, OWNER OF A PROPERTY ( CONSISTING OF ANY BUILDING OR LAND APPURTENANT ,THERE TO) IS TAXED ON THE INCOME IN THE FORM OF ANNUAL VALUE UNDER THE HEAD, INCOME FROM HOUSE PROPERTY. RENTAL INCOME FROM VACANT LAND OR PLOT IS TAXABLE UNDER INCOME FROM OTHER SOURCES. SO DEEMED LET OUT IS NOT APPLICABLE IN THIS CASE AS THE CONCEPT RELATES TO A HOUSE PROPERTY. R.V.RAO
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