I have a flat having 3 rooms
One room has been let out to tenant.
Is the income to be included in IT-return for tax purpose?
Since I am residing and rented one room , what should be mentioned in Schedule-HP ....(Tick if let out) column.
8 Replies
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 16 May 2010
Yes, the income is to be included if it is rent out.
But, you have to understand the assessment procedure also.
You can get deduction for unrealized rent, municipal tax paid for that portion, 30% standard deduction and any interest paid for the house loan attributable to that portion.
(Guest)
yaar abhishek.....if Im not wrong ...then he is a common man who is filling his return himself....and u are telling him about preconstrucion intt , unrealise rent , municipal tax...dont u think ....u will make him confuse...bcoz these things ...you will not really not found in all practical cases...
CA. Abhishek K. Pandey
(Manager (Advance))
(901 Points)
Replied 16 May 2010
yaar rohit......isme aisa technical kya hai......aur fir isme usika faayda hai.......hai na +++++ agr woh cacllubindia par hai to itna to kar hi sakta hai.
Baki agar woh na kar paye to fir..................................
uski marzi.....:-)
Nitin Grover
(CS)
(1228 Points)
Replied 17 May 2010
Dear Ashok
their is simple way in INDIA if u r earning money from any source you have to show it in ur income
and how much u r earning is taxable in ur hand. your ITR form is ITR 2
and as per above said from my friends
firstly deduct Municipal Taxes paid by you then deduct 30% of remainning amount as Standard Deduction and then Int (if any) paid on House Loan. no more deduction is allowed.
Regards
Naveen
(Learner)
(116 Points)
Replied 17 May 2010
Hi Ashok,
Follow the below mentioned procedure:
Income from house which is devided into units and each unit is used for a separeate purpose then this method is to be followed :
1. Income from each portion will be calculated for each portion separetely. In your case there are two units- Let out and self occupied.
2. Expected rent of entire house is apportioned on the basis of floor area.
3. The municipal taxes paid for the entire house are apportioned between each portion based on floor area.
4. The deduction for interest payable for the entire house is also apportioned on the basis of floor area.
Now, Annual value of each unit (in your case two units) will be calculated separately as per below sections:
1. For Self occupied : GAV is NIL
2. For let out: Annual value calculated as per section 23(1)
It should be noted that under the head house property, what is taxable is annual value of house property calculated as per respective sections.
I hope this helps..
Thumar Shital
(PCC Student)
(241 Points)
Replied 18 May 2010
yes rental income included in your gross total income under the head Income from House Property.
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