Income from House Property - GST Registration, GST cancellation, GST Return Filing

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Income from House Property


Income from House Property

Income from a let out house property is determined as under:
Gross Annual Value
  1. Municipal Value
  2. Fair Rent
  3. Standard Rent   (If Rent Control Act Applicable)
  4. Actual Rent

Gross Annual Value = (1 or 2 which is higher but limited to 3) or 4 which is high

Net Annual Value = Gross Annual Value – Municipal Tax paid by landlord

Deduction u/s 24

  • Standard deduction @30%
  • Interest on borrowing capital – 2Lac
  • Interest payment for re-construction, repairs or renewals upto Rs.30,000/-
  • No deduction can be claimed in respect of expenses of insurance, ground rent, repairs, collection charges, electricity & water supply, salary to liftman etc.
  • Interest of pre – construction period will be deducted in 5 equal annual installments ( After finished construction)
  • If Machinery also let out, it taxable on income from other sources
  • If assesses have more than one house property than one property for house purpose and all properties for business are exempt and all other properties are taxable on the head of income from house property.
  • Deduction for principle amount is also eligible for deduction u\s 80C subjects to over all limits of Rs.1.50 Lacs.

Conditions for claiming interest on house property

  • Acquisition or Construction of house must have been completed within 3 years from the end of financial year in which the money was borrowed.
  • Property must be self occupied by the person
  • Property was not given to rent
  • If property under construction principle amount is exempt in current year and interest amount exempt after construction finished in equal five installments.

Documents required for deduction of interest on housing loan

  • Certificate from lending institution
  • Loan sanction letter
  • Lease deed & Possession (ownership) certificate
  • Declaration for ownership & self occupancy

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