20 August 2012
An assessee who gets Rent on monthly basis from any Communication Company like Realience, Vodaphone etc for the using of the Roof of a building (Tower is set on that roof). What will be the Percentage (%) of Let-out portion & Self- Occupied portion ? Please advise.
21 August 2012
The Best parameter to compute the percentage of Let out portion and Self occupied portion is Built Up Area of said flat. For Instance Total area of Property say, 350SQFT (Built Up)out of which 175 SQFT Let out in FY and balance is used for self residence then proportion is 50:50, This would be apply to segregate Reasonable Expected Rent, Municipal Tax and Int. on Loans. Moreover IT Act does not define the rule of computation of percentage in case of partly let out properties. However, Buil-Up-Area of any property is considered by the property act and many municipal Acts.
I also invite other experts to express their opinion on said query, so as to get best answer from forum.
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