I have losses which could not be set off for the last year
i.e. for the year ending 31/03/1998.If I cannot set off
this during this year, can I carry this forward? Please
advise me on this aspect.
I
own the house I live in. Do I have to pay any tax?
There is no tax liability on the house owned by you,
but in case you have received rent on the house you own,
tax is payable as it becomes an income for you.
I
own a shop, which I have rented to my friend. What is
my Tax Liability?
Property, consisting of any building or any part of it
(i.e. a shop or flat or apartment) owned by you, and is
rented is taxable.
Income received, as rent is taxable under the following
conditions: -
a. The property should be owned by you.
b. The property can be either land/buildings or the land
adjoining the building.
c. The owner should not utilise the property for the purpose
of business or profession wherein the profits made are
taxable under income tax.
I
often hear the term "ANNUAL VALUE" often in the context
of House Property? What does this mean?
Annual Value is the basis of calculating Income from
House Property. Annual Value is the amount which the property
is expected to earn in the form of rent. Where the actual
rent received is more than the fair rent, the actual rent
is considered as the annual value. Where the actual rent
is less than the fair rent, the latter will be annual
value.
I
live in a rented house at Cochin as I work here. I own
a house in Delhi. How is the Annual Value calculated?
For instance, A person owns a house in Cochin and is transferred
to Delhi where he does not own any house property and
hence stays at a rental place. In such a case, the house
property in Cochin cannot be used for self- occupation
and notional income therefore would be chargeable though
the person does not derive any benefit from the property.
The annual value of such property would be taken as NIL
subject to following conditions:
i) The assessee must be the owner of only one house property.
ii) The assessee should not be able to occupy the house
property because of his employment, business etc. away
from the place where the property is situated.
iii) The property should not have been actually let nor
should any benefit derived there from.
How
is the Annual Value of a partly let out and self occupied
property calculated?
If the property is partly self occupied
then the annual value of the portion that is self-occupied
will be taken as nil. The working of annual value in such
cases is given below: If the property is let out in part
during the previous year: The annual value of the entire
property will be first taken as if it is let out. The
annual value of the self occupied portion will be deducted
for the full year. Further for the let out portion, the
proportionate annual value for the period during which
the part was self-occupied will be deducted. The balance
will be the taxable annual value. If the property is let
out during any part of the previous year The annual value
will be determined as if the property has been let out.
Out of it, the proportionate value for the period for
which it is self- occupied will be excluded and the balance
will be the taxable annual value. Municipal taxes are
to be deducted from the annual value in the following
cases
i) The property must be in the occupation of the tenant.
ii) The municipal taxes must be borne by the landlord.
The municipal taxes must be paid during the year.
If
the house is not given on rent & the property remains
vacant, how will it be treated for income tax purpose?
Please help me calculate the Annual Value of Vacant Property?
Though the property is vacant and no benefit is derived
from it, annual value will have to be determined on notional
basis and also no deduction in respect of municipal taxes
will be available.
What
is meant by 'deemed ownership'?
The following persons are treated as the 'deemed owner'
of the house property for the purpose of charging to tax
income from house property. (i) An individual who has
transferred the house property to his spouse (otherwise
than in connection with an agreement to live apart) or
to a minor child (not being a married daughter) (ii) The
holder of an impartible estate is deemed to be the individual
owner of the properties of the estate. (iii) A member
of a co-operative society, company etc to whom a building
or part of it has been allotted or leased under a house
building scheme. (iv) A person who is allowed to take
or retain the possession of any building as per contract
as defined in sec 53A of the Transfer of Property Act.
Ownership must be of the super structure i.e. a construction
on land is necessary. It is not necessary that the assessee
should also be the owner of the land.
How
is the fair rent of a property determined?
Fair Rent is the reasonable rent of a similar property in
the same vicinity or area. This depends on the following
factors:-
1. The municipal rateable value of the property (In
the case of a co--operative Housing Society, this can be
obtained from the MUNCIPAL CORPORATION) OR
2. The standard rent, if any under the Rent Control
Act.
I
receive Rs.48, 000/- as Rent. The Fair Rent as per municipal
valuation is Rs.32,000/-. What will be the Annual Value
of my Property?
If the fair rent is Rs. 32,000/- and actual rent received
is Rs.48, 000/-; Rs.48, 000/- would be the annual value.
However if the actual rent received were to be Rs 25,000/-
and fair rent is Rs.32, 000/- Rs.32, 000/- would be the
annual value.
I
have purchased a house in which I am staying. I pay Rs.8500/-
per month i.e. Rs.1, 02,000/- per annum towards installments
of housing loan taken for this purpose. Are there any
rebates that I can avail of?
In case you have availed of a loan for the house you own,
you are eligible for deduction under section 80C.The Finance
Company or the Bank or the Company from where you have
obtained the Loan will provide a certificate for the Installments
paid. Suppose Rs.30, 000/- is the Principal amount then
you are eligible for deduction U/S 80C amount
of Rs.1,00,000/-. Interest
on borrowed capital for acquiring house property is deductible
upto Rs.1,50,000/- property is acquired or constructed if the date
of the loan is after 1st April 1999. This limit was enhanced
in the last Budget. Previously it was restricted to Rs.75,000/.-If
the loan is for an house constructed prior to 31st March,1999
or the loan is prior to 1st April,1999, then the maximum
amount available is Rs.30,000/-. You will therefore be
entitled to a deduction of Rs.72,000/- if the loan is
after April 1999 and the construction is completed after
31st March,1999. But if it is for an old house or the
loan is prior to 1st April, 1999 then you can avail of
Rs.30, 000/- as deduction from your Income.
What
are the implications in Income Tax in a case where a house
is jointly held by both the spouses?
The self-occupied house owned jointly by husband and wife
is exempt from tax. When the house is given on rent, the
rent received can be apportioned exactly as per their share
in the house property. In case you have availed of a Housing
loan then the amount of interest paid can be claimed in
the ratio of the loan taken by both the spouses The installment
paid is eligible for rebate, and can be claimed by you &
your wife in her income tax returns.
I
have given myhouse on Rent. Can I avail of any deductions?
You can avail of the following deductions for a Rented
Property:
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