Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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 :: form 3cd :: VAT Audit :: TDS :: ACCOUNTING STANDARD :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: cpt :: articles on VAT and GST in India
 
 
Sales Tax »
 Assam government to dismantle all sales tax check-gates post Goods and Services Tax
 Income tax: How to calculate capital gains tax on sale of old jewellery
 Six arrested for posing as Sales Tax officers, extorting money
 Insurance Agency Mergers and Acquisitions in Q1 "Explode," OPTIS Partners' Report Reveals
 Sales tax sleuths raid spare parts shops in Meerut's infamous Sotiganj market
 Income Tax: How offshore income could be taxed twice
 India finalises bills to launch new sales tax in July
 NMC to implement new tax system from Apr 1a
 13 per cent sales tax boost post demonetisationa
 Arun Jaitley May Lower Corporate And Income Tax Rates But Hike The Service Tax Rate
 Tax on high seas sales becomes dispute area

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 2017 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