Section 194I deals with tax deducted at source on payment of rent. TDS has to be deducted where the total amount paid or credited to the account of the recipient exceeds Rs. 1, 80,000 during the financial year. Any person making payment of rent to resident shall be liable to deduct tax at source under… Read More »
Owner is a person who legally owns the house-property. He is chargeable to tax in respect of his property. But in some cases what happens is some person shall be treated as the owner of the house-property even though the legal owner is some other person. This is called as “deemed ownership” under section-27, of… Read More »
Myth: Deduction in respect of payment of interest and repayment of housing loan is available only on one house. It is not true. Most taxpayers generally believe that the deduction on interest and repayment of housing loan is available on one house only. But in actual, an individual can have more than one housing loan.… Read More »
Who is considered the Owner of House Property as per Section 27 of the Income Tax Act and Meaning of Deemed ownership under Section 27 (i) (ii) (iii) (iiia) (iiib) Owner is a person who legally owns the house-property. He is chargeable to tax in respect of his property. But in some cases what happens is some… Read More »
Deduction from Income from house property .i.e. Deduction available under house property head for rent & Interest paid on loan taken for such house property. As Per Income Tax Act 1961 “Statutory deduction” includes: (a) A sum equal to thirty per cent of the annual value. Deduction of 30% of rent received is allowed as deduction… Read More »
Interest paid on loan take for house property is disallowed if the following conditions are not fulfilled as per section 25 of the Income Tax Act. Any interest chargeable under this Act, which is payable outside India and on which Tax on such payment has not been deducted Tax on such payment has not been… Read More »
Income Tax Liability on Arrears of rent received or outstanding rent received as per section 25 of the Income Tax Act 1961. Section 25B deals with the arrears of rent received in the current financial year of any previous years in the matter of house property. In which an Assesses is the owner of any… Read More »
Limits & Conditions for Claiming Deduction of Interest on Borrowed Capital includes loan take from banks, financial institutions or from private sources on house property for computation of Income from House Property under Section 24(b) of Income Tax Act,1961 Section 24(b) of the Income Tax Act allows deduction from income from houses property on interest… Read More »
Income Tax Treatment for Property Income .i.e Rental or Self Occupied in case of Property/House/ Flat owned by Co-owners under Income Tax Act 1961. Under the Income Tax Act 1961 section 26 defined that the Property owned by the Co-owners then the each person share included in the Income from House Property and also in the total… Read More »
Cost of Improvement mean all expenditure of capital nature incurred in making additions or alterations to the capital asset. However, any expenditure which is deductible in computing the income under the heads Income from House Property, Profits and gains from Business and Profession or Income from other sources would not be taken as Cost of… Read More »