Income tax on income from second house
I want to know if i am supposed to pay tax if i am having a second house, the house is not given on rent. How much income i should show on this when i am not getting any income from the house. more
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The notional income from the second house if not let out, is the annual rental value of the municipal corporation as shown by them in the property tax bill. If given on rent(usually higher than the municipal rental value) then the actual rent has to be shown. In that case the corporation also increases the property tax. Later they refuse to reduce the tax even if it is kept vacant and the IT dept also takes the increased value as the rent supposed to have been received even if vacant. more
Apr 15
It's true that municipal corporation increases the tax for rented house, but after vacation, the tax is reduced by submitting necessary documents, which I did for Kolkata Municipal Corporation. It's true everywhere. Now in many cities online unit area rate assessment has been introduced, so that the owner can give self declaration to reduce the tax on rental/ no-rental basis. This also I have tried for Bengaluru Municipal Palike Corporation. more
Apr 15
MR. Mahadevan is correct. I also do the same.You can even adjust the interest on loan without any limit. more
Apr 15
You have to show a "notional income" from the second house if the house is not given on rent. It is the market rate of rent in that area. You can assume a reasonable value for the rent. The taxable value can be computed by reducing the total annual value by the municipal tax for that year folowed by 30% for maintenance. The balance amlunt will be aded to your tax under the heading "income from house property". Please note: I am not an auditor. I provided this information based on my personal experence. I have two houses. The second house is occupied by members of my family and there is no rent received. Still I am paying tax as above. more
Apr 15
This is very unfair. If house is not given on rent then why should one be forced ti income Tax Deptt to forcefully indicate rental income. At the most if suspected let there be surprised checks by ITO to establish that facts are true. it is high time that govt becomes fair to honest tax payers. If some one has too much of property then yes understandable. but not for one or Two houses. more
Apr 16
