thanks for sharing

Thank u for sharing...

Can U please tell me how can we determine the value of standard rent.

Plz reply sir....

Thanks its very useful points

What will be the tax implication in below case?

Suppose a family have five members Mr. A and Mrs. A and three children all are major. Mr. A gets property from his ancestral under will property is not register under his name. After some time Mr. A dies without will and property is let out by Mrs. A and his children. Rent income is deposited in the joint account of Mrs. A and his children. What will be the tax implication?

1. Who will be liable for tax?
2. Is that income from house property divided in the 4 part and taxable in the respective individual i.e. Mrs. A and her 3 children?
3. Is it will be treated as AOP?
4. If Mrs. A had made some legal expense to clear title on property then Is it allowed as deduction?

Now the Service tax on rental income from immovable property is come in from some time.

Now If I have rental income from property given on commercial use.. Income is Rs. 100000/- per month i.e. Rs. 12 Lacs per annum, then

1. Do I get the standard deduction of 30% u/s 24A?
2. As before I was not under the service tax net.. this property was treated like house property and rental income was shown in income from house property head with claiming std deduction.

Please help me as I think I may be totally messed in multiple taxes.

Panjwani

I have one query on Income From House Property.

A person is having one house in Chennai and the same is given on Rent. He has taken Housing Loan to purchase this property. He is working in Mumbai. He is leaving in rented house in Mumbai. He has purchased one house in Mumbai with Housing Loan. This house in Mumbai is not given on rent (vecant through out the year).

How to calculate income from House property purchased in Mumbai? Can he claim entire interest on loan as deduction?

Regards,

Avinash Amble

aamble @ thermaxindia.com

I have one query on Income From House Property.

A person is having one house in Chennai and the same is given on Rent. He has taken Housing Loan to purchase this property. He is working in Mumbai. He is leaving in rented house in Mumbai. He has purchased one house in Mumbai with Housing Loan. This house in Mumbai is not given on rent (vecant through out the year).

How to calculate income from House property purchased in Mumbai? Can he claim entire interest on loan as deduction?

Regards,

Avinash Amble

aamble @ thermaxindia.com

I have one query on Income From House Property.

A person is having one house in Chennai and the same is given on Rent. He has taken Housing Loan to purchase this property. He is working in Mumbai. He is leaving in rented house in Mumbai. He has purchased one house in Mumbai with Housing Loan. This house in Mumbai is not given on rent (vecant through out the year).

How to calculate income from House property purchased in Mumbai? Can he claim entire interest on loan as deduction?

Regards,

Avinash Amble

aamble @ thermaxindia.com

Case: I have an existing residential property in name of myself and wife (share not defined). I am purchasing new residential property and required to decide ownership patter for the same.
Should I register new property in my name only? Or again jointly with wife?
Housing deduction and benefits is required for me and not for wife.
I am evaluating two options and request to suggest the better one considering income tax , wealth tax and capital gain taxes and stamp duties applicable.

Option One: Registering new property in my name only: I will claim this new property as deemed to be let out and will set off full interest against my salary till interest component is high. Now after years when interest will be negligible, I will transfer 50% share in current house to my wife. Now I will be absolute owner of new property and my wife will be absolute owner of existing owner and both property will be exempted from income tax, wealth tax. I will be required to pay 50% stamp duty for this transfer and also transferring 50% share without consideration will still make me deemed owner of existing property. But I will try to show some consideration or will transfer at market value to avoid capital gain. Please evaluate this option?

Option Two: Registering new property jointly with wife: I will claim this new property as deemed to be let out and will set off full100% interest against my salary till interest component is high. Will I  be able to take benefit of full interest though I am 50% owner? I will be paying full EMI and interest and will I be able to claim 100% interest?. Now after years when interest will be negligible, I will transfer 50% share in current house to my wife and in consideration she will transfer 50% share in new house to me . Now I will be absolute owner of new property and my wife will be absolute owner of existing owner and both properties will be exempted from income tax, wealth tax. Will transferring shares to each other for consideration at same time exempt capital gain? I need to pay stamp duty on the property(50%value) whose Market Value is more?

Please share opinion as to which option is good to follow. Also requesting to answer the  questions asked in between those options.
 

I bought a second house at place X by taking a housing loan,  for which i am paying close to 2.5 lakh in interest for the year 2011-12, possesion of the second house  was taken on 06  Mar 12,

Shall i be elligble for full interest rebate that is 2.5 lakh for the year or for 25 days only.

pls help urgent

thanks

Dear Sir,

1. I have a flat in joint name(self and wife), taken on joint loan; but EMI is paid by me. I have been claiming the entire tax benefit.

2. Can the 50% rent received be shown by my wife in her IT return ?

3. If no, then if she pays 50% EMI to me, but leave the enitre exemption to be claimed by me. Would that help in reflecting the 50% rent in her income.

Thanks,

Sir

I live in company owned flat and they deduct appropriate rent for the same. I also own a house in another city and is not let out  for rent and is locked. My wife and I use the house when we are in town. Do I need to show incoem from house property.

Please respond. Thanks

R.Muthukrishnan

I have self occupied property in Thane, Which is Vecant since 2010 (No Rent income). during the F.Y. 2010-11 i have done repairing work around Rs. 150000/-. Loan of the house property is clear on 2010. My question is whether i am eligiable for 30%(Repair and Maintance) standard Income Tax benefit during the F.Y. 2011-12 as well as Muncipal tax .Rs. 13500/-a.p? Let me know how to calculate the same. for the net annual value

Regard

Prakash

Originally posted by : CMA. CS. Sanjay Gupta
	INCOME FROM HOUSE PROPERTY (SECTION 24 A) One of the most popular queries from individuals is about how is the rental income they are receiving from property taxable. In this section, PersonalFN will set out in simple terms and with easy to understand examples, exactly how any income received from a house property (i.e. rent) is taxed, and under what conditions. Lets start at the beginning. Frequently Asked Questions I receive rental income from a house property, is it taxable? Yes. The rental income received from a property is referred to as the annual value. So the annual value (i.e. rental income) of property is taxable as ‘Income from House Property’ if the following conditions are satisfied: You own a property that consists of buildings or lands appurtenant (attached) (like a garage); and The property should not be used by you for the purpose of any business or profession, the profits of which are taxable. Is rental income received from a vacant plot of land also taxable? No, for the purpose of the ‘Income from House Property’ section, there are definitions that are applicable, as follows: “Building” is defined as any building (whether occupied or intended for self-occupation), office building, go-down, storehouse, warehouse, factory, halls, shops, stalls, platforms, cinema halls, auditorium etc. Income arising out of the building or a part of the building is covered under this section. “Lands” is defined as land adjoining to or forming a part of the building. It would depend on the nature of the land, whether it is appurtenant to the residential building, factory building, hotel building, club house, theatre etc. and will include courtyards, compound, garages, car parking spaces, cattle shed, stable, drying grounds, playgrounds and gymkhana. Income from buildings and lands appurtenant are taxable under Income from House Property. So, this will include income from a building (that part of it which is owned by you e.g. the flat that you own), and the income from the land appurtenant. If you own a vacant plot and are receiving income from it, it is not included under ‘Income from House Property’, it is included under ‘Income from Other Sources’. I have let out a property and am receiving rent. How do I calculate how much of this rent is taxable? It is very easy. You need to follow 3 very small steps. First: Determine your property’s gross annual value (see Qs. 4) Second: Deduct municipal taxes paid Third: Make deductions available under Section 24b i.e. interest on borrowed capital i.e. a home loan, if any. The net figure is your taxable income from house property. How do I calculate the ‘annual value’ of my property? Take the following steps: Find out reasonable expected rent of the property (municipal rent or fair rent, whichever is higher) Consider rent actually received / receivable (see Qs 5.) Take whichever is higher from a. and b. Calculate loss due to vacancy Step c. minus step d. is the gross annual value of your property. Deduct municipal taxes to arrive at the net annual value of your property.   How do I calculate rent actually received / receivable? It is simply: Rent of the past year for which the property was available for letting out Less: unrealized rent (e.g. from a defaulting tenant) Equals: Rent actually received / receivable Illustration 1: HOW TO CALCULATE GROSS ANNUAL VALUE Mr. X owns a property at Mumbai. Municipal Value is1,80,000. Fair rent is2,15,000. He has given it on rent in the past financial year for 10 months. Actual rent received is30,000 per month. The house is vacant for 2 months in the past financial year. Municipal Value Rs. 180,000 Fair Rent Rs. 215,000 Annual Rent (for 10 months) Rs. 300,000 Gross Annual Value is calculated as below:     Step 1: Reasonable expected rent (MV or FR - whichever is higher) Rs. 215,000 Step 2: Annual Rent (for 12 months =30,000 x 12) Rs. 360,000 Step 3: Higher of Step 1 and Step 2 Rs. 360,000 Step 4: Less Loss Due To Vacancy (Rs. 30,000 x 2) Rs. 60,000 Gross Annual Value (Step 3 - Step 4) Rs. 300,000 Illustration 2: HOW TO CALCULATE NET ANNUAL VALUE The same Mr. X’s municipal taxes are10,000 annually. Gross Annual Value   300,000 Municipal Taxes Rs. 10,000 Net Annual Value (GAV less municipal taxes) Rs. 290,000 Illustration 3: HOW TO CALCULATE NET TAXABLE INCOME FROM HOUSE PROPERTY Also, Mr. X has taken a home loan to buy this property. The loan amount is15 lakhs. The interest component paid in the last financial year is1,50,000. Now we calculate how much is Mr. X’s taxable rental income he has received from his property. Net Annual Value (GAV less municipal taxes) Rs. 291,000 Less Deductions under Section 24     Standard Deduction (30% of Net Annual Value) Rs. 87,300.0 Interest on Borrowed Capital Rs. 150,000 Taxable Rental Income from Property Rs. 53,700.0 What is the difference between classifying my property as Let Out, Self Occupied or Deemed to be Let Out? For the purpose of taxability of Income from House Property, House property is classified as: Let Out – House Property actually given out on rent Self Occupied – House Property self occupied by owner – you actually live in this house Deemed to be Let Out – In case of owning more than one house property, one property is treated as Self Occupied, and the other is automatically classified as Deemed to be Let Out property. I receive rent from a house on which I have a home loan – this is the only house I own. I am living in a rented apartment. How do I calculate my tax on house property income? Your income from house property is simply the rental income you receive from the house on which you have the home loan as calculated above. This house has been given on rent and is thus classified as Let Out Property. Treatment of income from Let Out Property, Deemed to be Let Out Property and Self Occupied Property are summarized below for easy reference: Particulars   Let Out Self Occupied Deemed to be Let Out Annual Rent received (Gross Annual Value) a xxxx NIL xxxx (*) Less:         Municipal tax paid, if any b xx NIL Xx Net Annual Value C = a - b xxx NIL Xxx Less:         Standard Deduction @ 30% (2) D = 30% of C Xx NIL Xx Interest on Home Loan (3) e Actual 1,50,000 Actual Income chargeable to tax F = c - d - e       Note: (*) In case of Deemed to be Let Out property, standard rent as per local municipal laws is considered as annual rent received. What are the deductions available to save tax on this income? There are 2 deductions available: Standard Deduction Deduction of interest on a home loan What is Standard Deduction? Standard Deduction of 30% is given to compensate annual repair and maintenance expenses incurred on House Property. For example: Suppose you have rented out a property and the net annual value was12 lakhs in the previous Financial Year. You can deduct 30% i.e.3.60 lakhs for the purpose of repair and maintenance, regardless of the actual amount spent by you on repair and maintenance. Your taxable income would thus be8.40 lakhs in the previous financial year. How can I use home loan interest to save tax? In case of Let out and Deemed to be Let Out properties, you can deduct the actual interest paid by you on a loan taken for the purpose of buying, repairing, constructing, renewing or reconstructing the house property in question, to save your tax. For a Self Occupied House Property, deduction on account of interest on Home Loan (loan taken only for acquisition or construction of the property) is restricted to1,50,000. Are there some properties where income received is not taxable? Yes, the list of these types of properties is: Income from any farmhouse forming part of agricultural income; Annual value of any one palace in the occupation of an ex-ruler; Property Income of a local authority; Property income of any registered trade union; Property income of a member of a Scheduled Tribe; Property income of a statutory corporation or an institution or association financed by the Government for promoting the interests of the members either of the Scheduled Castes or Scheduled tribes or both; Property income of a corporation, established by the Central Govt. or any State Govt. for promoting the interests of members of a minority group; Property income of a cooperative society, formed for promoting the interests of the members either of the Scheduled Castes or Scheduled tribes or both; Property Income, derived from the letting of go-downs or warehouses for storage, processing or facilitating the marketing of commodities by an authority constituted under any law for the marketing of commodities; Property income of an institution for the development of Khadi and village Industries;' Property Income of any political party. Income from house property held for any charitable purposes; TAX PLANNING TIPS   How can I save tax if there is Joint Ownership on the property? In case of joint ownership, the income from house property can be split between both the co-owners which can reduce the overall tax outgo. I am buying a second house. How can I save tax on it? If you buy your first house in a single name, the other house can be purchased in the name of your spouse – thus, both of you would have just one house, and won’t have to pay income tax on an income that you don’t even earn. In other words, you will avoid paying taxes on a Deemed to be Let Out property. How can I save tax by taking a Joint Home Loan? If you are Joint Owner and also apply for joint home loan, you are eligible for higher deduction on account of interest on home loan as compared to single home loan. In case of joint home loan, both the co-borrowers can take maximum deduction of1,50,000 each. Are there other tax planning tips on income from house property? Yes If you have more than one property, then only one house of your choice is treated as self occupied and all others are considered Deemed to be Let Out (if not Let Out). You should carefully choose which house to be treated as self occupied, in order to minimize your tax liability Interest payable on a home loan is only deductible if tax is deducted at source, so take care to ensure that your TDS is paid

Nice Information. It will much helpful for newbie the real estate business

Builders in Jaipur

 

What is the meaning of "ONE HOUSE PROPERTY" ? 

If I have 3 rooms in my house & I have rented them to 3 different persons, Is this a case of more than one house property? And in which form will I have to submit my return ?