Income from house property

This query is : Resolved

Abhishek Roy Choudhury (Querist)
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17 July 2015 Dear Sir,
A person having income from house property (rent) for the F.Y. 2014-15 of Rs. 3500.00 and he had paid property tax for that year Rs. 1400.00 and also paid arrear property tax of the previous years of Rs. 2800.00 in cash. Thus the total municipal tax paid is Rs. 4200.00 while the rent received during the year is Rs. 3500.00 which means there is negative balance in income from house property. He has also not deducted the standard deduction of 30%. He wants to know how it can be shown in ITR- 1 under the head income from house property.

Please suggest as early as possible.

Thanking you in Advance,
Abhishek Roy Choudhury.

CA John Abraham Austin ACA

CA John Abraham Austin ACA (Expert)
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17 July 2015 It can not happen.
It is not the rent received becomes the Gross Annual Value of the property. It is the lower of Municipal Rent V/s Fair Rent and not the lower of the result of previous activity and Actual Rent received as reduced by the unrealised rent.

It looks like the rent received by the landlord is very much below the real rent of that property.

So, here the notional rent has to be treated as the 'Gross Annual Value' of the house property.