Income from house property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 December 2011 Please advise how to calculate the taxable income for rental received by a person.Assuming a person receives rent of 100,000/- in fy 11-12 ,what are the exemptions allowed to clculate taxable income.

Thanks in advance

Guest

Guest (Expert)

13 December 2011 Hi,

30% standard deduction (of 12.00 Lacs) irrespective of the amount of actual payment towards repairs etc. will be allowed under section 24.

Also if some interest is paid on the loan obtained for property it shall also be allowed to be extent of interest. Deduction will be allowed irrespective of the fact whether interest is paid or not during the financial year.

Kind Regards.

CA VISHAL RANA,CS,B.Com,AMFI

CA VISHAL RANA,CS,B.Com,AMFI (Expert)
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13 December 2011 agree with expert.

in above case assessee receive rent 100000 in FY 2011-12 so standard deduction(30%) u/s 24A will be 30000. however you can claim deduction for interest on loan u/s 24B.

Taxable income from house property would be Rs. 70000

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Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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13 December 2011 A.Total Rent Received1,00,000/-
B.Less Amount of Rent which can not realized
C.Less Tax paid to Local Authorities
D.Balance (A-(B+C))=1,00,000/- (Assumed B & C is zero)
E.Less Standard Deduction 30% of D= 30,000
F.Less Interest Paid on This House property but it can not be more than 1.5 Lakhs if owned and if rented as in this query than No Limit you can claim actual Interest paid amount(Assumed Interest paid on it 60,000/-)

Than Income from House Property is:
1,00,000-(30,000+60,000)
=Rs.10,000/-

@Neha Jain I think you are agree with it.

Abhishek Ranjan Singh
ARS Solutions
email2ars@gmail.com
+91 9022838615

Guest

Guest (Expert)

14 December 2011 Mr. Abhishek,

Pls appreciate since this property is let out so deduction under section 24B will not be limited to Rs. 1.50 Lacs (Loan taken for construction/purchase) or Rs. 30000/- (Loan taken for repairs or renovation)

Actual amount of interest paid will be allowed even if it exceeds rental income.

Kind Regards,

Neha

Message likes : 1 times

Abhishek Ranjan Singh

Abhishek Ranjan Singh (Expert)
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14 December 2011 Yes i am totally agree with Neha Mam
Thanks
i forgot to write it as in this query house is rented you can claim actual amount of interest without any limit

Once again Thanks Neha Mam