Presentation is loading. Please wait.

Presentation is loading. Please wait.

Income from House Property

Similar presentations

Presentation on theme: "Income from House Property"— 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:- i) The property should consist of any building or land apparent thereto 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

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. i) Transfer to spouse or minor child ii) Holder of impartible estate iii) Property held by a member of Co-operative Society iv) Person who has acquired a property under Power of attorney transaction v) Person who has acquired the Right in Property u/s 269 UA (Property held on lease exceeding 12 years)

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

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

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

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

8 Self Occupied Property
Any one House Property occupied by the assessee for the purpose of residence is taken as SOP Annual value of SOP is Nil 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 : For Loans on or after : - For Purchase/ Construction : Rs 1,50,000 - For Repairs & Renewals : Rs 30,000 For Loans Prior to : - For any purpose : Rs 30,000

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

Download ppt "Income from House Property"

Similar presentations

Ads by Google