Direct Tax Code 2012 House Property ( Interesting Points)

Some Interesting Things to Know about the Direct tax Code House Property had for those how are familiar with Income Tax act 1961.

1) Renting Is Business !! Still You are in House Property Head ! 

   Now Even if tax payer have a Business of Renting Property, The rent of the Tax Payer would be taken under House Property. As Let Out Property (LO)

2) Not Let Out (NLO) !!! Annual Value !! Its Over !!  : 


   Now Only those Income ( rental income ) would be taken, Which is been paid on Let Out Property , In case of NLO no annual value would taken into Consideration. (Sec 26)

3) 20% Replaced 30% Standard Deduction for Repairs and Maintenance. 


4) Accrual Basis Rent !! No Income if Received in Advance.
  
   Now Rent even if paid in advance for any other Financial Year. It would be Taken as income in Related Year only not in which it was received even if Tax payer Maintains accounts on Cash Basis.

5) Arrears of Rent : 
  
   - Arrears Taken as income in the FY it is Received.
   - Arrears would be taken under the House Property Head, even if not owner in that FY.
   - 20% Deduction for Repair and Maintains.

WE WOULD AGAIN LIKE TO MAKE YOU ALL NOTICE THAT ITS Financial Year NOT Assessment Year OR Previous Year.

DO SHARE YOUR VIEWS !




If Found Useful do Hit +1 sign below 


Thank You