Knowledge Base - Income from House Property
Income from house property is a notional income based on a concept called Annual value. This is the value a property is expected to fetch if it is let out. It may be more than the actual rent being received if let out. If it is not let out the expected market/fair rent will be considered as annual value for the purpose of taxation. Property includes the building and the land surrounding it.
Yes, if the the property is not used for business purpose.
The person should be the legal or deemed owner of the property.
Yes, provided the loan is taken for the purchase, construction, repairs or renewal of the property and the proper certificate for loan taken can be produced.
No. You can claim any one as self occupied. Incomes from buildings situated in or near agricultural farm are considered exempt provided they are used for dwelling of the farm owner/cultivator or for related purposes of storage etc.
Yes. Income from house property is a notional income and only in respect of one self-occupied residential unit it will be considered as nil. In case of the other residential unit, marketable rental value will have to be offered for tax, which will be treated as deemed to be let-out property.
No. The net taxable income from the property must be calculated first and then apportioned between the co-owners. In this process of calculation maximum interest payable of Rs.1.5 lakh can be considered only once.
Yes, the property can be divided into two seperate units depending on the amount of investment and accordingly rental income can be segregated and shown in the respective files.
The calculation will have to be made separately for each of the properties.