pkm (EE) 25 November 2011

Tax on house rent

I own a house which is on rent @Rs 4000/- pmThe interest on loan is Rs 55000/- (Prov) for the year 2011-12.I own a flt also which is self occupied.The interest on loan is Rs 99000/-(Prov) for the year 2011-12.Kindly guide me how to calculate the taxable income from property.

Thanks!

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Vineet (Director) 26 November 2011

Rented House: (I presume you are not paying any tax to municipality, pls check it from your society bill. if its there please adjust computation accordingly)

Annual Rent 48,000

Less: Municipal Tax 0

Adjusted Annual Rent 48000

Less Deduction u/s 24(1) (30%) 14400

Less interest paid on housing loan (full interest) 55000

Net taxable income from rented house (-) 21400 (loss which can be adjusted against other income or carried forward)

For self occupied property:

Rent Nil

Less : Interest on home loan 99000 (allowable upto Rs 1.50 Lakhs)

Net taxable income from self occupied house (-) 99000 (loss which can be adjusted against other income or caried forward to next year)

Hope this helps you.

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