I have a commercial property which was let out for Rs.20000 per month. For the entire last financial year it was vacant. The municipal tax paid is Rs.50000 for last financial year.
What is the notional rent and income tax payable in this case.
And also as the property was under complete renovation and not suitable for occupation for the entire year, can the rent be nil and hence no income tax payable?
15 April 2012
as you say that the property was not suitable for entire year, notional rent will not be taxable. notional rent will be taxable only if the property is available for letting out....
16 April 2012
If you propety is givedn on rent and it is vacant for few months then notional rent is to be treated as your income but if the property is not suitable for any use till it is renovated or re-constructed then no notional rent is to be treated as your income. Moreover notional rent has vacancy allownace
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