nufican (business) (67 Points)
21 July 2015How to calculate IFHP if the property was let out but was vacant throughout the P.Y.
For Eg. A house property having a municipal value of Rs.5 lacs, fair rent Rs. 6 lacs was intended to let out to tenants. Unfortunately during the P.Y. there was no tenant for this house property. Municipal tax is Rs 5,000 ( of which Rs 1,200 is payable). Interest paid on loan taken for purchase of property is Rs 1,79,000. What is the IFHP?
Z
( )
(2965 Points)
Replied 21 July 2015
It shall be deemed to be let out FOR ENTIRE PERIOD, [Benefit u/ 23(c) shall not be admissible as property was vacant for entire previous year]
Municipal value or fair rent (whichever is higher) [GAV] 600 K
Municipal taxes paid (3.8 K)
NAV = 596.2 K
Deduction u/s 24
[u/s 24(a)] 30% of 596.2K (178.6 K)
[u/s 24(b)Interest deduction [no limit since deemed to be let out] (179 K)
Income from house property 238.6K
Live class on PF & ESI Enrollment & Returns Filing(with recording)
CAclubindia
