LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Anthony Raj (Manager - Operations)     13 April 2015

Income tax from property - karnataka

Dear Members,

1. Please advice if Income Tax need to be paid based on:

- Both RENT and DEPOSIT put together?

- ONLY RENT?

 

2. How is TAX computed?

3. Please let me know the ACT no's - which supports the correct point and TAX Computation.

 

Thanks,

Anthony



Learning

 1 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     13 April 2015

Indian tax laws have various provisions whereby certain notional items are deemed to be income for the purpose of taxation, though, in the normal sense, one may not regard these as incomes.
One such notional income is the annual value of a house property. The fair rental value of a house is supposed to be its annual value, if the house is self-occupied or vacant. In case of a property let out on rent, while the rent is an actual income, one has to compare the fair rental value with the actual rent received, and the higher of the two is taxable. One of the issues is whether the municipal rateable value, or in the alternative, the standard rent of the property, can be taken as the fair rental value, or whether the tax authorities can adopt rental rates fetched by similar properties in the vicinity as the fair rental value.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register