• Income tax calculation on the let out property

I have two houses. One of them is self occupied. For the second house I got the possession in March 2015 and for the income tax filing last year, I showed that house as deemed let out for the Month of March'2015. 
I have now let it out, from December, 2015. How do i calculate the income from the let out home now? Should it be : 
Deemed Let Out: April to November
Let out: December on wards?

Let out only: December onwards?.

Asked 2 years ago in Income Tax from Bangalore, Karnataka
You can take annual value and claim vacancy allowance or alternatively just show the rent you have actually received, which is a very simple calculation. There will not be significant difference between the two workings.
B Vijaya Kumar
CA, Hyderabad
833 Answers
46 Consultations

5.0 on 5.0

Dear Sir,

It will be as below :

Deemed Let Out: April to November
Let out: December onwards
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

The Taxable amount will be calculated proportionately considering both Deemed to be let out & Let Out property.
Rohit R Sharma
CA, Mumbai
2089 Answers
90 Consultations

5.0 on 5.0

Dear Sir,

You should claim 
Deemed let out value as Rs. 12,000/- per month only for April to november & Real Rental Value as Rs. 13,000/- from December onwards the tax liability as below

Total Rental income  (12000 X 8) &  (13000 X 4) = Rs. 1,48,000/-
Less :- Municiple Tax Paid
Less :- 30% Standard Deduction on rent = Rs. 44,400/-

Gross Taxable Rental Income = Rs. 1,03,600/-
Less :- Interest on Housing Loan = Rs. 2,00,000/- (Maximum allowed u/s 24(b))

Net Taxable Rental Income = Rs. 96,400/- 
Vishrut Rajesh Shah
CA, Ahmedabad
605 Answers
10 Consultations

5.0 on 5.0

Dear sir

As per section 23(1)(a)

where the property or any part of the property is let out and was vacant during the whole or any part previous  year  and owing to such vacancy (Because of such vacancy) the actual rent received or receivable is less than Expected rent. The amount so received or receivable.

Expected rent                           = 156000

Actual Rent                                =52000

       Gross Annual Value                   52000( Actual rent is less due to vacancy)
Less: Municiple taxes                         0
          Annual value                                                            52000
Less: Deduction u/s 24
        (a) Standard deduction                  15600
        (b) Interest on borrowed capital   300000

Income chargeable under head house property u/s 22  -263600

Loss to be carry forward to next year 263600

Shiv Kumar Agarwal
CA, Delhi
248 Answers
58 Consultations

5.0 on 5.0

Ask a Chartered Accountant

Get tax answers from top-rated CAs in 1 hour. It's quick, easy, and anonymous!
  Ask a CA