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Documents require for let out property

Dhanesh (Service) (75 Points)

08 December 2011

Hi,

I have to submeet my investment declaration to my employer. I want to know about let out property income/losses. What documents we require to submeet to employer or Income Tax Department for Let out property income/losses

Thanks,

Dhanesh

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3 Replies

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 10 December 2011

If the property self-occupied then ou will be required to submit a Certificate form the bank from whom u took the loan whihc certifies that the loan holder has paid Interest & principal on the loan taken. In case of let-out property, no need to submit any documents to your company. Calculate the income from let oput property by taking deduction of taxes, interest & std. ded. No need to submit any doeuments while filing your return, as there is no need now to submit any documents to the dept while filing the return. But keep the documents wiht you for any future reference.

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Dhanesh (Service) (75 Points)
Replied 13 December 2011

Thanks Giridhar,

One more question, Could you please help me out to calculate my Let out property Income/Losses which I need to show to my employer while declaration. Below is the details

Property is currntly vacent & ready. As per munciple valuation monthly rent receivable is 5000 Per Month. Yearly Tax paid to Munciple corporation- 6750. Maintainance paid to Society Rs. 350 Per month. Interest paid to HDFC Ltd. Yearly 181830. Priciple paid to HDFC for loan. 73426

Thanks,

Dhanesh

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 14 December 2011

If the property is vaccant, then you can claim only interest deduction of Rs 1,81,830 while submitting your income details from other heads to your employer.

Are you owning one more property currently other than the one you have given. If yes then the property will be a DLOP & you will be required to show nominal rental income from the property. However you will get benefit of the municipal taxes paid and on the net amount after payment of municipal taxes yuo can furhter get an Std Deduction of 30% of teh remaining value & interset deduction. Please note that paymt made to socity of Rs 350 will not be getting deudcted as u r getting std ded of 30%.

If you are going to stay in your this house then you will get the benefit of only the interest paid to HDFC bank.

If you have actually let out ur property then your income from HP will be as follows:

Rent Received 60000

Les: MT Paid 6750

Net Annual Value 53250

Less; Std Ded @ 30% -15975(53250*30%)

Int paid -181830

Loss from HP -144555

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