Calculation of Taxable Income From House Property

Filed Under: Tax

Income by way of rent from any residential or commercial property, being building or land appurtenant thereto, of which any Indian assessee is the owner shall be charged to tax under the head “Income from house property” as per Chapter IV of the Income Tax Act 1962. The following calculator helps such assessees in determining the total income chargeable to tax under the above given head of income.It is useful for assessees who are the owners or deemed owners of any residential or commercial property to determine their total income and hence the tax liability on such income. You may use our income tax slab for 2017-18 to determine the tax on such taxable income for assessment year 2017-2018. If you are in receipt of House Rent Allowance as well, you can determine the taxable portion of such amount received using our HRA calculator

Enter data in applicable bordered cells

A

Determination of Income from House Property No. 1
1

Rent received or receivable/ Annual lettable value

2

Unrealized Rent (Allowable as deduction for let out properties only if certain conditions are fulfilled)

3

Corporation or Municipal Taxes paid to local bodies
( Eligible for deduction only if such taxes are actually paid during the financial year )

4

Sum of Deductions ( A2 + A3 )

5

Balance Income chargeable to Tax ( A1 – A4 )

6

Deduction under Section 24(a) for Repairs and Maintenance – 30% of ( A5 )

7

Deuction under Section 24(b) for Interest payable on borrowed capital (In case of Self Occupied house Property, the maximum allowable deduction is Rs. 2 lacs )

8

Income from Housing Property No. 1 ( A5 – A6 – A7 )

B

Determination of Income from House Property No. 2
1

Rent received or receivable/ Annual lettable value

2

Unrealized Rent (Allowable as deduction for let out properties only if certain conditions are fulfilled)

3

Corporation or Municipal Taxes paid to local bodies
( Eligible for deduction only if such taxes are actually paid during the financial year )

4

Sum of Deductions ( B2 + B3 )

5

Balance Income chargeable to Tax ( B1 – B4 )

6

Deduction under Section 24(a) for Repairs and Maintenance – 30% of ( B5 )

7

Deuction under Section 24(b) for Interest payable on borrowed capital (In case of Self Occupied house Property, the maximum allowable deduction is Rs. 2 lacs )

8

Income from Housing Property No. 2 ( B5 – B6 – B7 )

C

Determination of Income from House Property No. 3
1

Rent received or receivable/ Annual lettable value

2

Unrealized Rent (Allowable as deduction for let out properties only if certain conditions are fulfilled)

3

Corporation or Municipal Taxes paid to local bodies
( Eligible for deduction only if such taxes are actually paid during the financial year )

4

Sum of Deductions ( C2 + C3 )

5

Balance Income chargeable to Tax ( C1 – C4 )

6

Deduction under Section 24(a) for Repairs and Maintenance – 30% of ( C5 )

7

Deuction under Section 24(b) for Interest payable on borrowed capital (In case of Self Occupied house Property, the maximum allowable deduction is Rs. 2 lacs )

8

Income from Housing Property No. 3 ( C5 – C6 – C7 )

D

Calculation of total income under the Head “Income from House Property”
1

Rent of earlier years realized under section 25A/AA

2

Arrears of rent received during the year under section 25B after deducting 30%

3

Total Taxable Income under the Head “Income from House Property”
D3=A8 + B8 + C8 + D1 + D2

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