EARNED ANY CAPITAL GAIN???????

Have you earned any capital gain and you are planning to acquire any house property you may save tax implications arising due to capital gain

If you want to save tax implications, you may invest your money by acquiring house property in rural areas, this will not only save your tax on capital gain, more over when you will sell out that property you will not get attracted by any tax liability as consideration arising due to sale of any house property in rural areas is exempt from tax.

People invest in house property in rural areas like in the form of farm houses, the purpose is for investment you may use it for holidays purposes, you may visit these places just to relax your mind, as these places are free from fast life as in cities which is full of pollution whether in the form of air pollution or noise pollution, you will find immense pleasure and relax your nerves,

If you are planning to buy nay house property you may buy it in rural areas.

For more feel free to write us at

tytgroup@live.com

OWE MORE THAN ONE HOUSE- KEEP YOURSELF READY TO PAY TAX ON OTHER

OWE MORE THAN ONE HOUSE- KEEP YOURSELF READY TO PAY TAX ON OTHER

If you own more than one house property and both the houses are self occupied than the second house will be taxable under the head house property.

the government gives option to assessee to pay tax on the other house property at his own choice, it means assessee has option to pay tax on any house i.e. one house in this case will be self occupied and the other one will be deemed to be let out and its fair value will be taxable under the head house property in the relevant assessment year.

the assessee in this case, if he owned more than one house property and both are self occupied then he should evaluate the fair rental value of both the houses and house whose fair rental value is less, he should pay tax on that according to the slab rate of relevant assessment year.

If the assessee had obtained any housing loan on that let out property (which is deemed to be let out in above case), and paid any interest on above house, then he can claim deduction for the interest paid in the relevant assessment year

For more write us at!!

tytgroup@live.com

RECOVERED ANY UNREALIZED RENT- THEN KNOW YOUR TAX IMPLICATION

RECOVERED ANY UNREALIZED RENT- THEN KNOW YOUR TAX IMPLICATION

WHEN THE ASSESSEE CANNOT REALIZE RENT FROM THE HOUSE PROPERTY WHICH WAS LET OUT TO TENANT AND SUBSEQUENTLY THE ASSESSEE HAS REALIZED ANY AMOUNT IN RESPECT OF SUCH RENT, THE AMOUNT SO REALIZED SHALL BE DEEMED TO BE INCOME CHARGEABLE UNDER HEAD HOUSE PROPERTY AND ACCORDINGLY CHARGED TO TAX AS THE INCOME OF THAT PREVIOUS YEAR IN WHICH SUCH RENT IS REALIZED. IN THIS CASE ITS IRRELEVANT WHETHER ASSESSEE IS OWNER OF SAID PROPERTY OR NOT BUT HOWEVER HE CAN CLAIM STANDARD DEDUCTION OF 30% UNDER SECTION 24 OF INCOME TAX ACT, 1961

THE MAIN HIGHLIGHTS ARE AS FOLLOWS

1. ANY RENT RECEIVED WHICH WAS UNREALIZED WILL BE TAXABLE IN THE PREVIOUS YEAR IN WHICH THE RENT IS RECEIVED
2. ITS IRRELEVANT WHETHER ASSESSEE IS OWNER OF SAID PROPERTY OR NOT
3. STANDARD DEDUCTION OF 30% WILL BE ALLOWED

FOR MORE WRITE US AT !!!

tytgroup@live.com

HOW TO CALCULATE THE ANNUAL VALUE OF YOUR HOUSE PROPERTY

HOW TO CALCULATE THE ANNUAL VALUE OF YOUR HOUSE PROPERTY

GROSS ANNUAL VALUE                           XXXX

LESS: MUNICIPAL TAXES PAID                 XXXX

ANNUAL VALUE (NET)                             XXXX

LESS: DEDUCTION U/S 24

       1. STANDARD DEDUCTION                XXXX      

       2. INTEREST ON BORROWED

          CAPITAL                                   XXXX

INCOME UNDER HEAD HOUSE PROPERTY      XXXX

FOR THE PURPOSE OF CALCULATING STANDARD DEDUCTION UNDER SECTION 24, THIS DEDUCTION IS ALLOWED AT THE RATE 30 PERCENT FOR EXPENSES INCURRED IN RELATION TO PROPERTY SUCH AS REPAIR, COLLECTION, INSURANCE PREMIUM PAID FOR PROPERTY ETC. THIS DEDUCTION CAN BE CLAIM BY ASSESSEE IRRESPECTIVE OF AMOUNT ACTUALLY SPEND.

FOR THE PURPOSE OF CALCULATING INTEREST ON BORROWED CAPITAL, IF ANY LOAN IS TAKEN BY ASSESSEE FOR PURCHASE, CONSTRUCTION, REPAIR, RENEWAL OR RECONSTRUCTION OF BUILDING, THE DEDUCTION IS ALLOWED ON ACCURAL BASIS, EVEN IF NOT ACTUALLY PAID AND IF ANY INTEREST IS PAID PRIOR TO COMPLETION OF CONSTRUCTION OR PURCHASE OF HOUSE THEN ANY INTEREST IS PAID, THE DEDUCTION OF INTEREST SO PAID IS ALLOWED DEDUCTION IN 5 EQUAL INSTALMENT STARTING FROM THE YEAR OF PURCHASE OR COMPLETION OF INTEREST. THE MAXIMUM DEDUCTION CAN CLAIM ASSESSEE IS Rs 30,000 OR Rs 1,50,000 IN ANY FINANCIAL YEAR, FOR THE PURPOSE OF CLAIMING DEDUCTION OF Rs 1,50,000 THE HOUSE IS CONSTRUCTED ON OR AFTER 1^ST APRIL, 1999 AND CONSTRUCTION COMPLETED WITHIN 3 YEARS.

TAX TIP

THE ASSESSEE CAN PURCHASE HOUSE PROPERTY IN CO-OWNERSHIP AND THE HOUSE PROPERTY IS SELF-OCCUPIED THEN ASSESSEE SHALL BE ENTITLED TO THE DEDUCTION OF Rs 30,000/1,50,000

OWN A HOUSE PROPERTY- KNOW YOUR TAX IMPLICATION

OWN A HOUSE PROPERTY- KNOW YOUR TAX IMPLICATION

HE YOU ARE THE OWNER OF HOUSE PROPERTY, THEN ITS ANNUAL VALUE IS TAXABLE UNDER THE HEAD HOUSE PROPERTY.

ACCORDING TO SECTION 22 OF INCOME TAX ACT, 1961, THE ANNUAL VALUE OF BUILDING OR HOUSE PROPERTY AND THE LAND APPURTENANT (i.e. ACCOMPANYING) THERETO IS TAXABLE UNDER THIS HEAD

EXPLANATION OF ABOVE RULE

1. EVEN IF LETTING OUT IS THE BUSINESS OF ASSESSEE STILL ITS RENTAL INCOME IS TAXABLE UNDER THIS HEAD.
2. IF BUILDING IS LET OUT TO CARRY ON THE BUSINESS MORE EFFICIENTLY, THEN IT SHALL BE TAXABLE UNDER HEAD PROFIT & GAINS OF BUSINESS OR PROFESSION
3. IN CASE OF COMPOSITE RENT, IF IT IN INSEPARABLE.
4. IF BUILDING IS OCCUPIED BY ASSESSEE FOR HIS OWN PROFESSION OR BUSINESS THEN NOTHING SHALL BE TAXABLE.
5. INCOME UNDER THIS HEAD IS TAXABLE ONLY IF ASSESSEE IS THE OWNER OF THE BUILDING

TAX PLANNING BY INVESTMENT IN CONSTRUCTION OF HOUSE PROPERTY

YOUR HOUSE CAN SAVE YOUR TAX

IF YOU ARE PLANNING TO CONSTRUCT YOUR HOUSE, YOU CAN SAVE TAX FROM THE CONSTRUCTION OR ANY MATERIAL REPAIR.

IF YOU ARE CONSTRUCTING HOUSE BY TAKING HOUSING LOAN FROM ANY FINANCIAL INSTITUTION THEN ANY SUM PAID ON AMOUNT OF PRINCIPAL OR INTEREST, ONE CAN CLAIM DEDUCTION UNDER SECTION 80C FOR THE AMOUNT OF PRINCIPAL PAID DURING THE YEAR BUT MAXIMUM OF Rs 1,20,000 AND CAN ALSO CLAIM DEDUCTION UNDER SECTION 24 ON AMOUNT OF INTEREST PAID DURING THE YEAR BUT SUBJECT TO Rs 1,50,000 or 30,000 (as the case may be).

HOWEVER, IF THE HOUSE IS CO-OWNED BY THE INDIVIDUALS THEN BOTH CAN CLAIM THE ABOVE SAID DEDUCTION.

SO ONE CAN CONSTRUCT HOUSE AS WELL CAN UTISILE THE SAID TAX EXEMPTION PROVIDED BY GOVERNMENT

FOR ANY QUERY PLEASE WRITE TO US!!!

tytgroup@live.com