INCOME FROM HOUSE PROPERTY

PRESENTED BYMOHD MUZAMMIL, AREEBA IRSHAD,MOHD AKBAR

MOHD SHAFAI,MOHD FAIZAN

House property for this purpose means:Any building which has the characteristic features of a building.Eg: Residential building , cinema theatres.

MEANING OF INCOME FROM HOUSE PROPERTY

CONDITIONS FOR TAXING INCOME UNDER THE HEAD

HOUSE PROPERTY There should be a building or a land appurtenant there to. AND The property should be owned by the assessee AND Such building should not be used for own business or profession

DEEMED OWNERSHIP Transfer to spouse otherwise than for adequate consideration.

Transfer to child.

Holder of impartible estate.

Member of a Co-op society, Company, Association of person.

Person in possession of the property.

Acquisition of rights by lease for a period not less than 12 years.

IMPORTANT TERMINOLOGY FOR CALCULATING TAXABLE OF

HOUSE PROPERTY Annual Value

Municipal Value

Fair Rental Value

Standard Rent

Actual Rent received / receivable

GROSS ANNUAL VALUE

STEP XMunicipal Value of Fair

Rental Whichever is higher

STEP YKnown as Expected Rent

(ER) or Market Value (MV)

Value in step X or Standard Rent whichever

is more.

STEP ZKnown as Actual Rent (AR) Value in Step Y or Actual Rent received or receivable whichever is

more

COMPUTATION “INCOME FROM HOUSE PROPERTY”

1) Gross Annual Value XXX

2) Less: (a) Municipal Taxes Paid XXX (b) Unrealised Rent XXX NAV (Net Annual Value) XXX

3) Deduction u/s 24 (a) Standard Deduction @ 30% of NAV XXX (b) Interest on Borrowed Capital XXX

INCOME FROM HOUSE PROPERTY (Annual Value) XXX

INTEREST DEDUCTION IN RESPECT OF SELF OCCUPIED

PROPERTY Standard Deduction

Interest on Loan taken for House Property.

Interest on Loan taken for let-out house property.

Interest on Loan taken for self-occupied property. (a) Deduction upto the maximum limit of Rs30,000 (b )Deduction upto Rs 20,000

INTEREST RELATING TO PRE-CONSTRUCTION PERIOD OF THE

HOUSE PROPERTY PCP means period commencing from

the date of loan or immediately preceeding the March 31st of the year of completion which ever is earlier.

Allowed in five equal installments commencing from the year of completion