Mr. A has Two Hose property. He self occupied one of the property for 3 Months and another property for 9 Months. For Remaining Months both the house was let out for the remaining months. i would like to know? Whether which property should be taken as a Self Occupied? Some of My friends are telling Property which has High Income can be considered as Self Occupied and another is deemed to be let out. Can any one Please Clarify according to act what will be the provision?
12 Replies
achyuthanand
(Audit executive/ CA Final)
(283 Points)
Replied 03 November 2009
no both should not be considered as self occupied... as it is let out during the previous year both should be cosidered as let out property only there is no case of selfoccupied in this case...
a similar question is given in the RTP of november pcc exams... check it out...answers are also given there
CMA RAVI GUPTA
(MT in VPL)
(493 Points)
Replied 03 November 2009
benefit of self property u/s23(2)(a) is availeble only if assesse doesn't let out the even for one day if assesse let out the self property even for one day then benifit u/s23(2)(a) is withdrawn and gross annual value of property is taxed D.L.O.
here both r let out so, gross annual value of these property will be taxed D.L.O.
achyuthanand
(Audit executive/ CA Final)
(283 Points)
Replied 03 November 2009
poonam i am afraid u r wrong i think... as per section 23 of IT ACT a property is a let out property if it was kept ready for let out during anyday of the previous year
CA Rahul Jain
(CA)
(1162 Points)
Replied 03 November 2009
i agree with achuthanand. if a self occupied property is let out even for a singly day, it is considered to be let our for the whole year.
ADITYA
(ca)
(39 Points)
Replied 03 November 2009
ya not a single property is considered to be self occupied
it is only whn property is not let out for a single day
thn high income property is considered to be self occupied
Sandeep Pandey
(CA FINAL)
(1306 Points)
Replied 03 November 2009
Both house to be taken as Let out property..................................
CA SUDHAKAR
(CHARTERED ACCOUNTANT)
(189 Points)
Replied 03 November 2009
As the both the property are let out for part of the year, both the house should be treated as let out property and that is already replied.
But, if both the property are not let out and both are used for self occupied or occupied only in one of the houses, then at the option of the assesee, any one of the houses should be treated as self occupied and other house as letout. That means, the assessee can declare smaller house with lesser rental value as deemed to be let out and bigger house may be treated as self occupied.
ca.sumit
(professional)
(93 Points)
Replied 03 November 2009
ya poonam sorry to say bt u r wrong....
as per law both shud be considered as let out
as even if u let out house prprty wich is self occupied ,for even 1 day
that will considered as let out
Shashi Bhushan
(Learner, Jalandhar)
(996 Points)
Replied 04 November 2009
for claiming a house property as self occupied there are two conditions:
1. it should be self occupied or could not be self occupied due to employment or business in other place. and the house is not let out for any part of year.
2. there is no other benefit taken from the house.
So you can not treate any house as self occupied.
Pradip Srinivasan
(CA Final)
(869 Points)
Replied 04 November 2009
Both shld b considered Let out, as in this case both r let out at some time during the year. For a house to b self occupied, it shouldn't b let out during any part out the year
CA Devanshi Gandhi (Ajani)
(FCA DISA Mcom CIFRS & LLB)
(9060 Points)
Replied 04 November 2009
both the property should be considered as let out house property
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