Date post: | 14-Feb-2017 |
Category: |
Real Estate |
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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