Income from house property

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Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2009 are two flats in the same construction considered as one unit? please reply urgently

Sunil

Sunil (Expert)
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25 November 2009 If they are adjoining each other and connected, then they are considered as one dwelling unit.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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25 November 2009 agree

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Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2009 and what if the flats are situated on different floors, isn't it still counted as 1 unit? i remember having read this somewer, but can't recollect the exact explanation.

CA. Rishabh Mittal

CA. Rishabh Mittal (Expert)
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25 November 2009 Please note that as part of an agreement with the Co-operative society, you have contracted to purchase two flats & you are owner of two flats. No matter if they are adjoining to each other OR are different dwelling units. In my opinion, they are to be treated as two different dwelling units.

Sunil

Sunil (Expert)
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27 November 2009 Two flats an be joined to each other by breaking the wall between and making it a single dwelling unit the same way as you purchase two plots of land and construct one house on both together. If you are looking for Section 54 exemption on sale of house property, they have been considering the word 'house' in both singular and plural context. Refer to the ready reckoners. However I have seen instances where two flats with two agreements were considered as one. In Mumbai municipal taxes were lower if houses were of less than 500 sq. ft. Therefore to sell a 1000 sq. ft. flat, builders like Raheja used to make two flats of 500 sq ft in their economical constructions and then after you buy it you would combine it into one flat. This way municipal tax on large premises used to be saved.