Income from House Property

 

 

Hi all,

 

this time I am going to let you know how to plan your income from house property.

 

As you know that any rental income earned on House property is charged under "Income from House Property", it is important to know how you can get to know your tax liability under the same heading.

 

I am going to plot this into three Phases.

 

Phase 1: Recognise your Income

 

Phase 2: Recognise your Deductions

 

Phase 3: Calculate tax

 

 

Phase 1: Recognise your Rental Income

 

Here annual Income does not mean the actual rent you receive. This has to be decided with reference to Municipal value or rent receivable subject to standard rent fixed if any. cause neither case rent can exceed standard rent.

 

Gross annual value is higher of rent received or receivable or Municipal value.

 

Once we get the Gross annual value the next phase is to get Net annual Value.

 

Net annual value (NAV) is arrived after deducting 30% on Gross Anual value.

 

 

Phase 2 : Recognise your deductions

 

Deductions under this head is primarily governed by section 24 of Income tax act.

 

there are two clauses under this section 24.

 

one: if the house is self occupied

Two: If the house is let out

 

The duduction talks about interest on housing loan. That means if you have taken housing loan , you can claim deduction under this head.

 

If the house is used for purely self residential purposes, then the maximun amount that is allowable is Rs.150000.

 

If the house is used for let out then the maximum amount that you can claim is the actual amount you are paying the interest.. It can be of any value.

 

 

Phase 3: Calculate Tax

 

Once you arived at the income chargeable under this head, you have to club all other sources of Income and calculate tax accordingly.

 

 

Thank you

View your annual tax statement online...

Hi all,
as the finance year is going to end soon( we know it should end on 31/03/2012), the employers have started collecting investment details from employees so that they can deduct tax properly. Now again there will be heave rush for tax planning and filing of income tax returns for the assessment year 2012-13.

thanks to techno savy income tax department. we all know how simple the procedure is to file income tax... no intermediaries no third person.. just we have to log in to the website and file the returns.

well here some thing that is worth telling is like this. before filing our returns we can view our tax credits. that is to say we can see how much tax(TDS) has been deducted from us. this will be helpfull in filing your return.
In income tax account after you log in you can find tax credits.

So all you have to do is to get yourself registered into it. this is free and check your tax credits online.

In case if you want any help, do let me know.

9176131352