charegability

Dear Shyam,

We have a concept of taxability of notional income of a self occupied house but no such concept is there in case of a let out property.

The reason for the above is the same is not required since the computation provision says, if the house is let out  higher of the following shall be taxable (subject to other conditions)

1) Actual Rent

2) Expected Rent

In other words, you can say the taxabiliity of notional rent comes in the form of "Expected Rent" in every case, so nothing further is required  where Owner has not recovered any rent from the tenant.

dear amir,

reply in two words, whether income 'll be assessed  under those municipal valution or it is not at all an income ?

If the assessee has only one house which is under question then the assessee can show it a self-ooccupied house property and Income from House Property is NIL.

If the assessee has more than one house property then yes notional rent will be charged under Income Tax Act.