Rental income

Hi,

- It will be treated as single house property because address is same for all the four tenants. Prepare four Rent agreements specifically mentioning the space occupied by them. 

- While filing ITR also, you need to mention specifically all the rentals received. In ITR, you need to mention rental income from all the tenants separately specifying their name, PAN and space occupied by them.

- The most important aspect is TDS deduction by the tenant. If the total rental per month of the property is more than Rs.50 k then everyone should deduct TDS @5% on the rent paid by them.

Thanks

Hi

It shall be considered as one house property irrespective of the fact whether you have entered into 4 different rent agreements with different persons.

All such rents shall be taxable.

Dear Sir,

Hope you are doing well !!

-It will be treated as one house property.

-You should make separate agreement with all of them.

-You need to show rental income from all of them in ITR.

-TDS@5% should be deducted by all of them if total rent received is more than Rs 50,000 p.m.

Hi,

- It will be treated as single HP only. No, you need not to pay deemed rent on the three rooms. If the property is occupied wholly throughout the year then actual rent received or deemed rent whichever is higher. If the property is vacant for the part of the year then actual rent will be considered only.

- For second HP, above same provisions will be applicable.

- 50 shops will be treated differently.

Thanks 

The whole property will be considered as single house property but you need to make different rent agreement with all of them.

The Rent as per municipal rates will be considered for whole house even when you have rented only one room and if its higher than the single room then such higher will be considered as rent.

If you are giving the house on rent then you can't claim the benefit of 2 house allowed for self occupied and if the value as per municipal rates is higher as compared to actual rent municipal rate shall be applicable but if the house is vacant for some months you will get the benefit of vacancy.

All 50 shops would be different.

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 Thank you.

Please call to discuss in length

Hi,

-It will be treated as one property.

-In such cases where the house property was partly let out and partly vacant during the year, there are two scenarios, which affect the actual rent received owing to such vacancy. 

Scenario 1: When the actual rent received or receivable is more than the expected rent despite the vacancy. In that case, the gross annual value is taken as actual rent received as it is higher than the expected rent. Expected rent is calculated as higher of the municipal valuation or fair rent. 

Scenario 2: When the actual rent received or receivable is less than the expected rent due to the vacancy of the property for some time during the year. The gross annual value of the property will be actual rent received or receivable.

- 50 shops would be treated as different properties.

Hello,

Your second house would be considered as a single house property even though the same is given on rent to multiple tenants through different rent agreements.

You cannot get the benefit of 2 SOP if you give one property on rent. And If the rented property is vacant for some time and the actual rent received is less than the deemed rent, then only actual rent will be considered.

50 Shops would be considered as different properties.

I hope this answer satisfies your requirement.

Regards,

CA Hunny Badlani

50 shops would be treated differently.

since you have given them on rent in a year for that year it cant get the benefit of 2 houses being self occupied.

Thank you

No sir, 50 shops will be treated as different properties.

Hi,

Your example of shop rent is not relevant in this case because in that scenario bigger question is whether the income from that rent is a business income or house property income. Based on the fact pattern, most probably it will be a business income and house property provisions will not apply.

Secondly, if your house is given on rent, then you will have to pay taxes bases on fair market value or actual whichever is higher.