House property income-vacant commercial property
anish
(Querist) 20 July 2017
This query is : Resolved
SIR
As per Income Tax provisions I Tax is to be paid on House Property Income. Barring one property chosen as self occupied, on other properties even if they are not rented income tax is payable on deemed rent income.
However for vacant commercial properties (in addition to one self occupied property) there is confusion. One view is that even if such properties are earning no rental income, Income tax is payable on deemed rental income. Another view supported by Tribunal judgement says the intention to let out commercial property is to be considered. If such property is put up for let out but tenants are not found house property income in this case would be nil and no income tax on account of house property income on such cases is payable.
Experts can you please clarify whether house property income tax liability in such additional vacant commercial properties arises, assuming there is already one self occupied residential property.
krishna mohan
(Expert) 26 July 2017
Better would be to consult CA specializing on Income Tax matters. But I am of the view if it is not rented out and no income is received and no liability of Income tax for a shorter duration say. vacant time. If it is under owners use, then you need to consult CA the relevant Income Tax provisions.
