Itr2: schedule hp: possession of an under construction flat on 31st march 2018

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KK009

35 Points Posted on 15 August 2018

I have a unique case for ITR2 Schedule House Property. The interest on home loan paid for the entire year was close to INR 3,00,000. Now, since the possession was in 2017-18 financial year, entire interest amount can be put in "Interest paid on borrrowed capital".

Property was let out in mid April 2018 for rent of 13,000 per month but that definitely can not be calculated as income for FY2017-18. Accordingly, what should be put in "Annual letable value or rent received or receivable (higher of the two, if let out for whole of the year, lower of the two if let out for part of the year)"?

Once property is declared as RENT OUT in schedule HP, it does not accept 0 as a valid value in that field.

Replies (4)

KK009

35 Points Posted on 15 August 2018

Any quick help here would be hugely appreciated!

Gauthami

Student CA Final

233 Points Posted on 16 August 2018

as per income tax act if house property is let out for even a single day then it is treated as let out property for entire year. since construction completed in F.Y 2017-18 but the house is not let out during that year n u want to claim whole interest amount as can deduction u/s 24 it is advisable to take gross annual value which is calculated by taking into consideration municipal value, fair value, expected rent and standard rent.

KK009

35 Points Posted on 16 August 2018

Thank you for reply. To double sure I understood properly, even if the property was not rented out and did not generate any income, rent of 13,000 per month * 12 should be declared?