Income tax calculation on the let out property

Income tax calculation on the let out property

hi,
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?

OR
Let out only: December onwards?.

Thanks.

Asked 9 years ago in Income Tax

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

1018 Answers

124 Consultations

Talk to B Vijaya Kumar

Dear Sir,

It will be as below :

Deemed Let Out: April to November

Let out: December onwards

Vishrut Rajesh Shah

CA, Ahmedabad

940 Answers

39 Consultations

Talk to Vishrut Rajesh Shah

Hi,
Can you help with the calculation for the most tax saving.The rent from December is Rs. 13000. The deemed let out rent claimed last year was Rs.12000. The interest on the loan for this property is Rs 300000.

Asked 9 years ago

The Taxable amount will be calculated proportionately considering both Deemed to be let out & Let Out property.

Rohit R Sharma

CA, Mumbai

2104 Answers

95 Consultations

Talk to Rohit R Sharma

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

940 Answers

39 Consultations

Talk to Vishrut Rajesh Shah

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

(13000*12)

Actual Rent =52000

(13000*4)

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

(52000*30%)

(b) Interest on borrowed capital 300000

315600