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Tax required if somebody owns two homes

B (Engin) (205 Points)

08 September 2017

Suppose somebody own two different homes. Is it that he/she will have to give one house in rent according to recent rules from India govenment? Is it that he/she will have to give extra taxes on second property? What kind of tax needs to be provided to the income tax department for owning a first and a second property?

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7 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185456 Points)
Replied 08 September 2017

One house property can be declared as self occupied........ but any other house property/ies are assessed as rented or deemed rented. Thus the local market rate prevailing in the area is taken as deemed income for assessment under head income from HP and accordingly taxed as per slab rate.

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Srinivas Reddy Kundur (P) (97 Points)
Replied 08 September 2017

select the house which earns more rent as self occupied, that way you can save tax

B (Engin) (205 Points)
Replied 08 September 2017

In which year did this rule came that the second or third or fourth property of a person will be trated as deemed rented and the local market rate prevailing in the area is taken as deemed income for assessment under head income from HP and accordingly taxed as per slab rate? Will this deemed rent amount will be taxed at 20 % rate if the person falls under 20 % incom tax slab and at 10 % rate if the person falls under 10 % income tax slab? Thanks for the replies.

Regards