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House property income

ketan (Small Business) (78 Points)

02 April 2016

Sir , I have one own house and get Rent from them Rs.42000/- yearly 2015-16. i am living with my parents at them home. can i treat HP income Rs.42000 or under let out calculation ?

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9 Replies

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Replied 02 April 2016

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Replied 02 April 2016

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Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 02 April 2016

You should treat your house in two units.

first in which you reside and that should be treated as SOP

2nd unit in which Tenant is reside and treat it as LOP

so as per my view 42000 should be treated as Income from let out property

ketan (Small Business) (78 Points)
Replied 02 April 2016

But , sir the house where i live togeather with my parents is on my Father's name. I have only one house that is out on Rent.Than I treat this income as per LOP calculation is ok ? I fill my IT return under 44AD

ashish (article) (151 Points)
Replied 02 April 2016

Rent is actually received.... No other option except to treat under lop...... And yes in your case, can file return under 44AD

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CA Jaydev Modi (PRACTICE ) (49 Points)
Replied 03 April 2016

According to my opinion you considered let out house because you receive rent and the total income is exceed basic exemption limit in total so hence you also get standard deduction of 30% and you file return . Thank you

ketan (Small Business) (78 Points)
Replied 07 April 2016

I AM LIVING WITH MY FATHER IN HIS HOUSE AND PAY RS.2500 PER MONTH AS RENT. AND RECEIVED RENT FORM MY OWN HOUSE WHICH GIVES ON RENT RS.3500 PER MONTH. I FILE MY IR TETURN UNDER 44AD. I TAKE MY HOUSE RENT INCOME UNDER HP. CAN I CLAIM PAID RENT TO MY FATHER ? IF I MAKE P&L AND B/S FOR MY PURPOSE CAN I TAKE EXPENSE OF ELECTRICITY BILL / GAS BILL / FLAT MAINTANCE / ETC ? AND CAN TAKE MY OWN HOUSE AS ASSET ?

Ruchi (CA) (1410 Points)
Replied 07 April 2016

The answer to both the questions is negative. Neither you can claim deduction of rent paid to your father from the rent received by you Nor you can show it as business income as income from such property is always chargeable under HP head only.

ashish (article) (151 Points)
Replied 09 April 2016

You can claim the rent paid under section 80gg .. PROVIDED YOU SATISFY THE CONDITIONS REQUIRE UNDER 80GG........................ MANY PEOPLE ARE NOT AWARE ABOUT THIS DEDUCTION AVAILABLE........ SO YOU NEED TO GO THROUGH IT TO CHECK THAT WHETHER YOU ARE ELIGIBLE OR NOT....