The income arising out of a house property either in the form of a rental income or on its sale is referred to as ‘income from house property’. In essence, any property such as house, building, office, warehouse is treated as ‘house property’ under the Income Tax Act. The ‘Income from House Property’ is one of the five heads of income that is taken into account for calculating the gross total income of an assessee during the year. However, there are several deductions allowed before the income from house property may be taxed. Know everything about how House property (Real Estate) is taxed in India – Self Occupied, Rental, Deemed Let out. All details are as per FY2020-21.
Total Pages - 62
Content Index -
A. INTRODUCTION TO INCOME FROM HOUSE PROPERTY
B. TYPES OF HOUSE PROPERTIES IN INDIA
1. Is my Income from House Property Taxable under Income Tax Act, 1961?
2. What are the different types of House Property?
C. OVERVIEW OF CALCULATION OF INCOME FROM HOUSE PROPERTY
3. What are the components of Calculation of Income from House Property?
4. How to compute income from Self-Occupied property?
5. How to calculate income from the Property let-out throughout the year?
6. How to calculate Income from Deemed Let out Property?
7. Can a property not used as residence by the taxpayer be treated as self-occupied property?
8. Is Rental Income from sub-letting chargeable to tax under the head “Income from House Property?”
9. What is the concept of ‘Deemed Ownership’? Under which circumstances a taxpayer is considered as the owner, even if he does not own the property?
10. Under which head is the rental income from a shop charged to tax?
11. My spouse and I jointly own a house in which both of us have invested equally out of independent sources. Can the rental income received be split up between us and taxed in the individual hands?
D. UNDERSTANDING THE BASIC TERMS USED IN THE CALCULATION OF INCOME FROM HOUSE PROPERTY
12. What is the Municipal Value of the Property?
13. What is meant by Fair Rent?
14. What is meant by ‘Standard Rent?’
15. What is meant by ‘Expected Rent?’
16. How to calculate Gross Annual Value?
17. What is ‘Net Annual Value?’
18. What is meant by ‘Standard Deduction?’
19. What is Interest on Borrowings under section 2(24)(b)?
20. What is meant by ‘Composite Rent?’
21. What is the tax treatment of the Composite Rent when the composite rent pertains to letting of building along with other assets?
22. What is the tax treatment of composite rent when the composite rent pertains to letting out of building along with charges for provision of services?
23. What is Unrealized Rent?
24. What is the tax of treatment of unrealised rent which is subsequently realised?
25. What is the arrears of Rent? What is the tax treatment of arrears of rent?
26. What is meant by ‘Pre-construction period?’
E. CALCULATION OF GROSS ANNUAL VALUE UNDER DIFFERENT SCENARIOS
27. What can be the different situations for calculation of Income from Let Out / Deemed Let Out House Property?
28. How to Calculate Gross Annual Value in different scenarios discussed above?
29. I own two houses. One is a farmhouse that I visit on weekends and the other is in the city that I use on weekdays. Is it correct to treat both these residences as Self-Occupied?
30. I own three houses which are occupied by me and my family. Is there any tax implication for financial Year 2019-20?
F. DEDUCTIONS TO BE CLAIMED WHILE CALCULATING INCOME FROM HOUSE PROPERTY
31. What deductions can be claimed from the income from house property?
32. Can I claim deduction of ₹ 4,00,000, if I own two self occupied properties?
33. How to claim deduction of Interest on housing loan of Let-out Property?
34. How to claim Interest of Pre-Construction Period?
35. Can interest paid on loans taken from friends and relatives be claimed as deduction while calculating house property income?
36. What is the tax benefit available on the repayment of housing loan principal?
37. Example 1
38. Example 2
39. What is Section 80EE of Income Tax Act, 1961?
40. What is section 80EEA of Income Tax Act, 1961?
41. Example 3
G. TAXATION OF CAPITAL GAIN IN CASE OF SALE OF HOUSE PROPERTY – BASIC TERMS
42. Does the Real Estate Properties fall under the definition of ‘Capital Assets’?
43. What is the classification of Capital Gains under Income Tax Act, 1961?
44. What is meant by the ‘Sale Consideration?’
45. What if the actual sale consideration is lesser than the Stamp Duty Value of the property?
46. What is meant by ‘Cost of Acquisition?’
47. What is meant by ‘Cost of Improvement?’
48. What is meant by ‘Selling Expenses?’
49. What is meant by ‘Indexation?’
50. In which year the capital gain is taxable in the hands of the seller?
51. What is the difference between Agreement to Sale and Sale Deed?
52. Can there be a difference between the date of ‘Agreement to Sale’ and the date of the ‘Sale Deed’?
53. Which date is important for deciding the full value of consideration in case of transfer of the property?
54. If the date of Agreement to Sale and date of Sale deed fall in two different financial years, then in which year the capital gain will be taxable?
55. Example 4
56. Example 5
57. Example 6
58. Example 7
59. Example 8
60. What is the Tax Rate applicable for Capital Gain on sale of House Property?
61. What are the provisions relating to Set off and Carry Forward of Losses from Sale of the House Property?
62. How is Capital Gain on property calculated?
63. How to calculate the Cost of Acquisition, if the Property is purchased before 01.04.2001?
H. HOW TO SAVE TAX ON CAPITAL GAIN OF HOUSE PROPERTY
64. How to claim exemption under section 54?
65. How much exemption can be claimed under section 54?
66. What if my capital gain is more than ₹ 2 Crores?
67. If, the Capital Gain is lesser than ₹ 2 Crores, an Individual or HUF may invest in two residential house properties
68. How to open a Capital Gain Account with nationalized bank?
69. What if I sell the new house property before expiry of 3 years from the date of investment?
70. What are the remedies, if I wish to park my capital gain money and purchase the house property after some time but before 3 years?
71. Whether interest received on amount deposited in capital gain account under capital gain account scheme is taxable?
72. Example 9
73. How to claim exemption under section 54EC?
74. Example 10
75. Example 11
76. Example 12
77. Do I receive interest on Tax Saver Bonds?
78. Should I pay Capital Gain Tax or Invest in Capital Gain Tax Saver Bonds?
79. What steps should I take to invest in 54EC Bonds?
80. What is Section 54F? How to claim exemption under section 54F of Income Tax Act, 1961?
81. How to claim the exemption under section 54F, if the entire sale proceeds are not invested in the house property?
I. TDS ON PURCHASE / SALE OF HOUSE PROPERTY
82. What are the provisions relating to the payment of TDS on purchase of the property?
83. I have sold my house property during the year, am I responsible to make TDS payment on the sale of the property?
84. Example 13
85. Example 14
86. I am liable to deduct and pay TDS on the purchase of the property. Do I need to obtain TAN for making the payment of TDS?
87. PAN of the seller is not available. What should I do?
88. What is the timeline to make the payment of TDS on the purchase of the house property?
89. How do I make the payment of TDS on the purchase of the Property?
90. I do not have net banking facility? How do I make the TDS payment on purchase of the property?
91. How to download Form 16B (for buyer of the property?
Disclaimer - This book is not meant as Tax Advise or Financial Advice. It only gives the information about the stock or the company as per publicly available information and Yadnya's analysis of that information.