Celebrate Freedom and save 20% OFF on CAclubindia Pro Subscription! Use code: FREEDOM20

Income tax and hp clarification

12 December 2018

If a person has no income except income from a single House property and is below the taxable limit. Should he be paying house property tax? Is there any connection between corporation and Income Tax department??

In this scenario, should the person pay the HP tax and then claim refund from IT for having excess tax paid or there is a separate form to claim exemption from paying HP tax by filling a separate form if any??

Can some one clarify

Reply
Follow
Share

9 Replies

Sarath Rajendran (Nil) (2791 Points)
Replied 12 December 2018

Your income below 250000 you no need to file IT return

Persons eligible for refund of tax from Income tax department, they must pay tax as per Income tax act

Upgrade to CAclubindia Pro. Subscribe Now!

Shyam Vasudevan (Manager) (48 Points)
Replied 12 December 2018

Sir

You have not followed my question. Can some serarch persons avoikld paying tax on house property

Mehul Bhanushali (CA in Practice) (174 Points)
Replied 12 December 2018

Property Tax is different from Income Tax. Property Tax is been paid to local municipality corporation in your area and you can't skip property tax. There is no relationship between property tax and income tax so the basic exemption limit doesn't matter

Jalpa Joshi ( ) (86 Points)
Replied 12 December 2018

Yes , agreed with Mr Mehul , property tax is charged by municiple corporation and it is compulsory, you can't avail benefit of it without paying income tax.

MOHAMMED IMRAN (1020 Points)
Replied 12 December 2018

yes, he can pay property tax to corporation
There is NO connection between property tax paid to corporation & income tax

he is not liable to adjust property tax paid to corporation with income tax liability.
But he can reduce the amount so paid for property tax from gross annual value of the house property to compute the net annual value of the house property (municipal tax)
after claiming all the allowable deduction - the amount is taken as income from House property on which tax is payable

Upgrade to CAclubindia Pro. Subscribe Now!

Shyam Vasudevan (Manager) (48 Points)
Replied 13 December 2018

Is this the position even if the individual depends on this rental income for livelihood which is below the taxable limit

Nikhil Kaushik (Fellow CA) (85637 Points)
Replied 13 December 2018

no. there is no such position.

CA. Mayur M. Mamtora (Chartered Accountant) (162 Points)
Replied 13 December 2018

Payment of House Tax is compulsory and it is to be paid to your Local Municipal Corporation, whether person is liable to pay income tax or not. Liability to pay House Tax has no connection with Income Tax Liability.

You can claim House Tax as a deduction from the Gross Annual Value of your House Property (in case of Rented Property) in your Income Tax Return.

ALOK GOEL (chief manager) (593 Points)
Replied 17 December 2018

The House property tax paid by taxpayer is adjusted in Income from House by way of Rent etc. If no rent or income from HP then net income from HP is considered zero even you show HP tax paid value. In othe words , even u paid HP tax is not considered for any taxable income and is rounded to zero

Hence you will not get any tax refund of HP tax paid to Municipal board etc. in your case.

regards