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Income from house property

Swapna . R (-) (65 Points)

29 June 2012

Hai everyone,

If a person aged above 60 years has income only from House property, then how can he claim his Cost of Living while filing his Annual Return?

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7 Replies

Deepak Parsai (Future CA) (623 Points)
Replied 29 June 2012

I am not getting your actual querry, plz clear it, which cost of living he wants to claim ?

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Deepak Goel (Partner) (54 Points)
Replied 29 June 2012

Cost of Living????

I think you are missing some thing here..

Rgds

Deepak Goel

Goutam Biswas (Assistant) (30 Points)
Replied 30 June 2012

I owned a flat in my own (individual) name and lying vacant. At present, I am residing in another flat which is owned by my wife (individual) . What is the tax implication of my own flat ? Can I claim housing loan interest exemption in my return ?

Thanks

Goutam Biswas (Assistant) (30 Points)
Replied 14 July 2012

NOBODY IS THERE TO GIVE ME A REPLY ?

Kartik (Manager) (22 Points)
Replied 17 July 2012

I am afraid there is nothing called cost of living that you can claim. Pls rephrase ur question : its not very clear what you wish to ask?

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Archana Das (CA Final student) (622 Points)
Replied 18 July 2012

@ Goutam as per the IT Act 1 property of an individual ( which is sop) is exempt from tax. As far as interest in concernd u can tak exemption in this regard

CA Tushar Singhania (Asst. Manager Accts & Fin.) (402 Points)
Replied 18 July 2012

Sir,

If your property is lying vancant, and that is the only property in your name, then you wouldn't have to pay taxes. But since your property is on rent your income is chargeable to tax. Your computaion will be as follows

Actual Rent is say Rs. 200000 per annum

Muncipal Value is say Rs. 150000 Per annum

since actual rent is higher your your Gross annual rent will be Rs. 200000

Less: Municipal Taxes Paid(say)Rs. 40000

Please keep in mind that M.Tax is on payment basis and not accrual basis

Net annual rent is 200k-40k= Rs. 160000

Less: Standard deduction @ 30 % i.e. Rs.48000

Less: Interest on loan (say) Rs. 40000

Income from House Proerty= 160k-48k-40k= Rs. 72000

keep in mind that interest on loan taken for construction, purchase or capital addition to ur house property will only be deductible

Hope this has helped you