Income from house property- it returns

ITR 339 views 9 replies

vasisth

professional

56 Points Joined June 2016

Facts :

A person owns

Residential Building in Mumbai which has 4 floors.
One floor is Self occupied and rest 3 floors are Let out
He has Housing loan and municipal taxes are paid on it

Query

Whether total income from the all the floors are to be consolidated and then compute income form House property by giving standard deduction at 30%

Should we calculate income from each floor ?

For instance 1st Floor let out for Rs 12000 p.mX 12 = 144000 and deduct std deduction @ 30% on 1,44,000/- i.e.43200/- and deduct proportionate interest and Muncipal taxes?

What proportion of interest and municipal tax is to be taken for self occupied property?

In IT Returns should it be shown as Income from different house property ?

Awaiting for your valuable reply

Thanks in advance

Replies (9)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209535 Points Joined July 2016

Taxable income would be same whether taken separately or in aggregate, but better to take it separately as per Municipal demarcation and tenantwise.

Self occupied portion will be different and its income shall be NIL

vasisth

professional

56 Points Joined June 2016

Dear Sir I completly agree with you about taxabilty
The only doubt is diclosure in IT Returns

If I show income from different house property, segregation of municipal tax & housing loan interest is difficult
Should I segregate above on area basis or number of house basis ?
Only one interest paid certificate and tax challan is provided as property as whole

CA Srujann kumar Reddy

Asst Manager(Internal audit)

1679 Points Joined May 2011

each one is an independent one treat as seperate house now number of properties will be 4 and divide by 4 for interest and municipal tax, std ded 30% for each floor

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209535 Points Joined July 2016

is Tenant also same?

vasisth

professional

56 Points Joined June 2016

No different tenants

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209535 Points Joined July 2016

Go as per Tenantwise. Other things may be divided area wise.

Pratosh

Project Manager

85 Points Joined July 2009

How Municipality is taxing you ? The municipality rental assessment should be considerd as final verdict in ascertaing if or not the full property is to be considered or tenantwise.

The highest of it be considered. I am not a tax professional but i read it somewhere that Municipality assessment of rental is considered as valid authentic proof for IT purposes.

Please go thru the link you will be better informed of the pros n cons. https://www.businesstoday.in/moneytoday/tax/tips-to-use-all-the-tax-benefits-that-are-available-on-home-loans/story/214121.H T M L

Best Luck filing your return

atanu kumar chatterjee

govt. employee

30 Points Joined July 2016

Mr. Vashisth you will have to divide your income frome house property in two parts, one is residential. The paid municipal tax will be 1/4 of the total paid for this part and you can claim the deduction for 1/4 of the interest on borrowed capital subject to a of Rs.200000 to generate loss from house property. Standard deduction will be as usual.

The other parts will be calculated together taking 3/4 of all values and interest on borrowed capital will be 3/4 of the total interest paid. Standard deduction will be as usual. for the income you can safely take the higher of municipal value and actual rent received.