Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT RATES :: Central Excise rule to resale the machines to a new company :: TDS :: ACCOUNTING STANDARDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: articles on VAT and GST in India :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: cpt
 
 
« Sales Tax »
 To protect its status, state forms panel to draft legislation on GST
 India Fails to Break Deadlock on New Sales Tax
 Sales tax staff protest against goods service tax council
 Income tax survey on city jeweller
 Service tax levy to weigh on upstream companies’ earnings
 5 pc tax on online sales awaits Cabinet approval
 Amendment to Additional Sales Tax Act unconstitutional: High Court
 Maharashtra will soon achieve Rs one lakh cr sales tax : CM Devendra Fadnavis
 CBEC chief bats for minimal exemptions for India Inc under GST
 Issuance of Free Sale & Commerce Certificate to Merchant Exporters
 Why model GST law does not give confidence to exporting community

Got more than one house? Tax saving tips
February, 21st 2014

Having multiple houses is not very uncommon these days. If you are planning to rejoice the rental income from these properties, hold on. Something is ready to pinch you hard. It is called Income Tax. We often focus on paying tax on our salary, deductions under section 80C, etc. and thereby simply neglect the house property income.

You might have skipped the part 'House property income' while filing your taxes last year under the impression that such income may not be traced. However, the I-T department is acting fast against such practices. Instead of not stating the house property income, why not think of minimizing the tax burden on this it? Before knowing how to do it, it's important to know how self-occupied properties and rented properties are treated for the purpose of income tax.

Self-occupied property for Income tax

A self-occupied property would be the one which is used for your occupation. The tax benefits/deductions allowed for this are:

1) Annual value will be treated as Nil.

2) Principal part of home loan (up to Rs. 1 lakh under section 80C) and interest part (up to Rs. 1.5 lakh under section 24)

Rented property for Income tax

A rented property is the one which derives rental income for you. The tax benefits/deductions for such properties are:

1) Municipal taxes paid

2) 30 per cent standard deduction

3) Interest part of home loan without any upper limit (Principal part doesn't qualify for deduction here).

4) Exempt from wealth tax if it is rented for more than 300 days in a year.

How else can you save tax?

If you have multiple properties, you have the option of choosing one as self-occupied and others would be treated as rented. Interesting part here is that you can even choose the one which you are not residing as self-occupied. If you want to save maximum tax, you need to choose the one with highest rental income as self-occupied and the rest as rented.

There is another way to save tax. You can register your house in your spouse's name so that each one will have one property as self-occupied, for which there will not be any tax.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Integrated Software Solutions Integrated Software Development Integrated Software Services Integrated Software Solutions India Integrated Softw

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions