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House propertity

CA RAJA SAHA (Dy Manager(F &A)) (321 Points)

14 February 2013

A Resident indian has two self occupied house propertity.One of the propertity let out for rent Rs.15000/- P.M. for 6 months.In calculating income from House Propertity , Gross Annual Value of one self occupied is Nil. But in calculating gross annual value of another self occupied let out house propertity how many months we will consider ? will we consider 6 months or 12 months ?

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Manikanth (Chartered Accountant) (342 Points)
Replied 14 February 2013

If an House property is self occupied for few months and let out for the other months then Fair rent of the property for the whole year shall be taken into account for determining the annual value(i.e. the period for which the property is self occupied shall also be taken as Letout)....Here u have to take 12 mnths instead of 6 mnths

If the assesse owns more than 1 house property which is Self occupied then out of that any one of the property shall be considered as Self occupied, remaning all are considered as letout properties

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CA RAJA SAHA (Dy Manager(F &A)) (321 Points)
Replied 14 February 2013

Thanks a lot Manikanth..Please mention the Income Tax Section ..

Manikanth (Chartered Accountant) (342 Points)
Replied 14 February 2013

It is one of the types of House property as per the Provisions Under the head Income from House Property. In ur Case name of that type is Part of the year Self occupied and Part of the year Letout

Akanksha Jain (Article) (690 Points)
Replied 14 February 2013

As per sec 23(1)(c) actual amount received will be taken as gross annual value

Manikanth (Chartered Accountant) (342 Points)
Replied 14 February 2013

Sec 23(1)(c) applicable only when the property is letout and was vacant during the whole or part of the year.As a result of that vacancy the actual rent received or receivable is less than the fair rent then the actual rent will be considered as Gross annual value

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Akanksha Jain (Article) (690 Points)
Replied 14 February 2013

and as per sec 23(1)(b) if actual rent is grater than expected rent then actual rent is taxable..

so in any case actual rent is taxable..

but if actual rent per month is less than expected rent per month then expected rent will be taxable..

CA RAJA SAHA (Dy Manager(F &A)) (321 Points)
Replied 14 February 2013

In my case it is difficult to estimate the Municipal Value then shall we take (15000*12) i.e.180000 as a expected rent ? and since my actual rent is (15000*6) i.e. 90000. So my Gross Annual Value is Rs. 180000.

What is your opinion ??