Presentation is loading. Please wait.

Presentation is loading. Please wait.

Income from House Property Lecture Notes. Section 22: Basis of Charge Income is taxable under the head Income from House Property if the following three.

Similar presentations


Presentation on theme: "Income from House Property Lecture Notes. Section 22: Basis of Charge Income is taxable under the head Income from House Property if the following three."— Presentation transcript:

1 Income from House Property Lecture Notes

2 Section 22: Basis of Charge Income is taxable under the head Income from House Property if the following three conditions are satisfied:- Income is taxable under the head Income from House Property if the following three conditions are satisfied:- i) The property should consist of any building or land apparent thereto i) The property should consist of any building or land apparent thereto ii) The assessee should be owner of the property ii) The assessee should be owner of the property iii) The property should not be used by the owner for the purpose of any business or profession carried on by him, the profits of which are chargeable to income tax iii) The property should not be used by the owner for the purpose of any business or profession carried on by him, the profits of which are chargeable to income tax

3 Deemed Owner Section 27 provides that following will be deemed owner of the house property for the purpose of charging tax on Annual Value. Section 27 provides that following will be deemed owner of the house property for the purpose of charging tax on Annual Value. i) Transfer to spouse or minor child i) Transfer to spouse or minor child ii) Holder of impartible estate ii) Holder of impartible estate iii) Property held by a member of Co-operative Society iii) Property held by a member of Co-operative Society iv) Person who has acquired a property under Power of iv) Person who has acquired a property under Power of attorney transaction attorney transaction v) Person who has acquired the Right in Property v) Person who has acquired the Right in Property u/s 269 UA (Property held on lease exceeding 12 u/s 269 UA (Property held on lease exceeding 12 years) years)

4 Annual Value A) Reasonable Expected Rent A) Reasonable Expected Rent a) Municipal Valuation xx a) Municipal Valuation xx b) Fair Rent xx b) Fair Rent xx c) Standard Rent xx c) Standard Rent xx (a) or (b) whichever is high XXX (a) or (b) whichever is high XXX subject to Maximum ( c) subject to Maximum ( c)

5 Annual Value B) Rent Received/ Receivable B) Rent Received/ Receivable Rent for the period the property Rent for the period the property is available for letting XX is available for letting XX Less : unrealised Rent XX Less : unrealised Rent XX XXX XXX

6 Annual Value C) : (A) or (B) whichever is high xxx C) : (A) or (B) whichever is high xxx Less : Loss due to Vacancy XX Less : Loss due to Vacancy XX D) Gross Annual Value XXX D) Gross Annual Value XXX

7 Net Annual Value Gross Annual Value XXX Gross Annual Value XXX Less : Municipal Taxes paid by owner XXX Less : Municipal Taxes paid by owner XXX Net Annual Value XXX Net Annual Value XXX Less : Deduction u/s 24 Less : Deduction u/s 24 i) Standard Deduction i) Standard Deduction ( 30 % of Net Annual Value) XX ( 30 % of Net Annual Value) XX ii) Interest on Loan XX ii) Interest on Loan XX Income from House Property XX Income from House Property XX

8 Self Occupied Property Self Occupied Property Any one House Property occupied by the assessee for the purpose of residence is taken as SOP Any one House Property occupied by the assessee for the purpose of residence is taken as SOP Annual value of SOP is Nil Annual value of SOP is Nil There is no deduction for SOP u/s 24 except interest on Housing Loan There is no deduction for SOP u/s 24 except interest on Housing Loan

9 Interest of Housing Loan for SOP Interest is allowed upto a Maximum of the following limits for SOP : Interest is allowed upto a Maximum of the following limits for SOP : For Loans on or after 1.4.1999 : For Loans on or after 1.4.1999 : - For Purchase/ Construction : Rs 1,50,000 - For Purchase/ Construction : Rs 1,50,000 - For Repairs & Renewals : Rs 30,000 - For Repairs & Renewals : Rs 30,000 For Loans Prior to 1.4.1999 : - For any purpose : Rs 30,000 - For any purpose : Rs 30,000

10 Pre Construction Interest Interest during the Construction period is accumulated and allowed as deduction in5 years Interest during the Construction period is accumulated and allowed as deduction in5 years Pre Construction Period = Date of Loan Pre Construction Period = Date of Loan to 31 st March immediately before Completion. to 31 st March immediately before Completion. Interest = Loan X Period X Rate/100 Interest = Loan X Period X Rate/100 Deduction = Total Interest / 5 Deduction = Total Interest / 5


Download ppt "Income from House Property Lecture Notes. Section 22: Basis of Charge Income is taxable under the head Income from House Property if the following three."

Similar presentations


Ads by Google