I have a 2nd house, which is vacant and I have not given it on rent either.
Do I still have to consider FULL EXPECTED RENT in income from house property?
Since house is 2nd house as per rules it is "DEEMED LET OUT"
Now as per Chapter 2 of tax payers Information series - 17:
Benefit for vacancy for the period when the property
remains vacant (in cases of let out proporties).
If due to vacancy, the annual rent received is lower than
the expected rent, then the annual rent realized is taken as the
gross annual value. However, this rule will be applicable only,
if the decline is only because of the vacancy.
Can I take benefit of this clause? Claiming that even if it is not really let-out, it is deemed let-out and hence vacancy clause still applies? i.e. zero income is earned.
Thanks.
CAclubindia
