Renting a flat to blood relative

Hi,
I have a flat in Mumbai, joint name with my wife. My in-laws were staying there without giving any rent to us. Do I have to still, show any rent in my IT return? what is the income tax implication for such case

Thanks
Mahendra JAin
Asked 7 days ago in Income Tax from Mira Bhayandar, Maharashtra
There is no compulsion if the house is being used by family members upto one house. No tax
Shyam Sunder Modani
CA, Hyderabad
953 Answers
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Dear Mahendra,

If you own more than one house in your name, you have to mandatorily show one house as let out and pay tax on the deemed rental value.

Please feel free to call/ revert in case of any doubts

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
755 Answers
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Hiii

As per income tax Act 1961, if you have more than one residential house then only one house you can use as self occupied and other is deemed let out even if used for personal use.

Thus as per information given by you, you have to show other house(s) as deemed let out.
Lalit Bansal
CA, New Delhi
69 Answers
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one will be treated as deemed let out property
Shyam Sunder Modani
CA, Hyderabad
953 Answers
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Hello Sir,

You can have only one Self Occupied Property. All other property in your name if not let out will be considered to be deemed let out property and tax shall be payable on such deemed rent.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
706 Answers
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Hi,
Your case fall under  own more than one Self Occupied House Property

In case you own more than 1 House Property and both or all are self occupied and not let out – which means either you’ve made one of them your residence and use the other one for some of your own purpose(not business or profession, since that is covered under the head Profits & Gains of Business & Profession). Your family, children stay there or you use the other one as a holiday home. In this case you will be allowed to treat only one of the properties as Self Occupied and all others are considered to be Deemed to be Let Out. Or simply, you income for this house property will be calculated as if it has been let out.

Any one property can be chosen as Self Occupied Property – The Tax Department wants you to assume only one of the properties to be self occupied and therefore the Gross Annual Value of such a house will be nil.
So, though your relatives are staying in your house and not paying you any rent, you are required to show notional rental income.
Vishakha Agarwal
CA, Bangalore
208 Answers
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All the houses in exceed of one house will be treated as let out or deemed let out and you have to pay tax on rental/deemed rental income for those houses.

Please feel free to call/ revert in case of any doubts

Thanks and regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
755 Answers
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