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Taxable Income From Housing Property In India
In respect properties, which have been let out, the amount of rent received will be treated as taxable rental income of the property. However the following are the provisions in this connection:-
Taxable rental value will be the highest of the following:-
- Municipal Rental Value of the Property.
- Fair Rental Value of a similar Property in a similar locality.
- Rent actually received by the assessee in respect of the property in given previous year.
However if Rent Control Act is applicable in the locality where the house is situated, then the taxable value cannot exceed the standard rent fixed in accordance with the Rent Control Act except where the rent actually received exceeds the standard rent.
Compute the rental value in the following cases:-
|
I |
II |
III |
IV |
V |
| Municipal Value |
50 |
50 |
50 |
50 |
50 |
| Rent Receivable |
52 |
52 |
57 |
57 |
60 |
| Fair Rental Value |
56 |
56 |
56 |
58 |
61 |
| Standard Rent under Rent Act |
NA |
55 |
55 |
55 |
73 |
| Rental Value will be |
56 |
55 |
57 |
57 |
61 |
Conditions Wihle Computing Value Of Income From House Property:-
- Where the self occupied property is treated as an exempt property and has been self occupied through out the year. In such a case since this property is treated as an exempt property no taxable income will arise from such property.
- Where a property has been self occupied for part of the year and let out for part of the year, one must calculate the annual rental value of the property in accordance with the above provisions and take a proportion of that annual value depending upon the period for which the property has been self occupied and has been let out as taxable income.
- Where property has been let out throughout the previous year in such a case, the annual rental value will be calculated in accordance with the above provisions.
- A property which is not actually let out but which is deemed to be let out. In such a case this property will be treated as if the property has been actually let out and the same provisions which as are applied to the property which is actually let out will apply.
- Where the assessee has only one property which cannot be occupied by him because he has to reside at some other place on account of his employment, business or profession carried on at some other place. Such a property will be deemed to be self-occupied though not actually self occupied and all the provisions of self-occupied property apply.
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