House property related

1 No. On let-out property, tax will be payable on rental income

2 Yes assuming both have purchased the houses from their own sources of funds

3 Yes it is mandatory to have invoices of capital expenditure incurred

4 NRI/OCI that do not possess Aadhaar Card are exempt

5 It is advisable to link as they are not mentioned in exempt category

6 Yes but borrow through banking channels only. Draft proper loan agreement. If your total income exceeds Rs.50 lacs, show it as a liability in schedule AL 

For detailed discussion you may opt for phone consultation

1. No he can claim it self occupied if either it is vacant or occupied but other family member, otherwise he should offer tax.

2. Yes if they own 2 houses.

3. Yes documents for claiming expenses are mandatory if AO asks.

4. You need to shift your PAN card to non-resident AO and then it might know.

5. If they have PAN then I think yes you should link as there is no exemption for them.

6. That would be a separate query related to FEMA and you can book consultation for same. No need to disclose loan in ITR if it is not for business in India.

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

1.) If the second house property is let out and you are receiving rent on the same and the tenant has been quoting your PAN for IT purpose then the income from house property is already accounted under your PAN therefore the same cannot be treated as self occupied.  

2.)Yes, as per IT Act an Individual can claim two house property as self occupied and therefore  they can as Husband and Wife are two separate individuals. 

3.) As per the Income Tax Act 1961, The onus to prove the cost of improvement claimed in computation of  Capital Gains is placed on the assessee and therefore the Assessee shall be liable to provide valid documentary evidences in support of his claim for the cost of improvement incurred at the time of Assessment if the Assessing officer calls for such documentary evidences and proofs or the same is bound to be rejected.

4.) NRI's are required to update their NRI status on the Income Tax portal .

5.) As per the law anyone holding a PAN other than the following:

• residents of the states of Assam, Jammu and Kashmir, and Meghalaya;
• non-residents as per the I-T Act, 1961;
• persons aged 80 and above at any time during the previous year;
• and those who are not citizens of India.

is required to link Aadhar with PAN, therefore since minors holding a PAN are not expressly exempt and therefore should link  PAN with Aadhar 

6.) Yes an NRI can borrow funds from a friend, there is no such disclosure requirement in the ITR as such. The borrowed amount be considered as loan and the same can be returned after a certain time period.However the entries in Bank account should be able to substantiate the same(credit and corresponding debit of the amount) if it was a bank transaction. 

1. No 

2. There is no percentage or limit prescribed in the law. It depends on facts of the case and most probably subject to litigation

3. If you possess Aadhar No. then you are required to link it

4. To substantiate it further, you can draft a loan agreement

For detailed discussion you may opt for phone consultation

1.)The meaning of the term self occupied is inferred to be that the property is either occupied by you or your relatives(parents etc.) or is vacant and is not generating any income, however a let out out property is generating income. In this scenario quoting PAN or not by the tenant is irrelevant.

Thus the best practice as per law would be to treat a let out property as let out and offer the rent received as your income arising in India.

2.)On the  basis of the judgement shared it is quite clear that it has been a contentious issue and no definite or exact amount can be considered as minimum amount which will be allowable to the assessee in the absence of documentary evidence for the cost of improvement incurred. 

It is also noteworthy in the Judgment shared that the Department went into appeal against the A.O's order of allowing the deduction without documentary evidence and the matter was taken to Tribunal and thereafter to  Hon'ble High Court  which allowed deduction on the basis of  probability theory and reasonable certainty.

To conclude no specific amount can be be considered that shall be allowed and it completely depends on the Assessing Authority's judgement and merits of the case .

3.) There is an option to update your residential status in the "Profile" section on the income tax portal which I have recommended to update.

4.)I would like to highlight the following in addition to the conditions stated above  regarding the IT rules for borrowing of funds by an NRI,an NRI can only borrow funds from a RELATIVE subject to the following terms and conditions:

• ·The loan should be free of interest.
• ·Minimum maturity period should be one year.
• ·The limit of loan is US$ 25.000.
• ·The loan should be utilized by the NRI for his personal use.
• ·Loan amount should be credited to the NRO account of the NRI.

if the aforesaid conditions are followed than there shall be no future complications.

1. No that won't be the correct understanding if the property is actually let out.

2. Case laws can give such propositions but there is nothing mentioned in act.

1. No You can claim self occupied house only if the house is vacant or occupied by you. If it is let out, it cannot be claimed as self occupied. 

2. Yes the husband and wife can claim 2 self occupied property 

3. Yes documents are required if the tax officer calls for the information

4. A non-resident is exempt from Aadhaar so no linking required. 

5. If they have PAN then no exemption for them.

6. Yes you can borrow funds