The annual value of a house property is the amount of rent which it is reasonably expected to earn
There are many tax benefits associated with the construction of a home. However, they can be best enjoyed when the home construction is complete in stipulated time period.
It is better to know the tax treatment you get depending on your tax status and accordingly account for capital gain tax.
There are three options available for the salaried individuals to file income tax returns - ITR-1, ITR -2A and ITR-2. Here is how you should choose the right form for the financial year 2014-2015
There is a bit of work that a buyer would need to take when they buy a house property and this relates to the process of paying taxes.
The income tax laws provides for taxation of your income under various heads. Income from house property is one of them.
This is due to the fact that the income arising out of the farm house from the purpose of renting the premises would be considered as income from agriculture.
Balwant Jain, CFO of Apnapaisa.com explains what is the annual value of a house property and how is it calculated.
Balwant Jain of apnapaisa.com presents a series of things which an individual should not forget while filing the tax returns. He emphasises on notional incomes, gifts, capital gains from mutual funds and so on.
There are municipal taxes that are paid by the individual on a house property. Once this is paid the next question in the mind of the property owner is whether there is a tax benefit that can be availed for the expense that has been made.
Buying a house property involves a lot of money, energy, knowledge of the surroundings (of the property involved) and the most important is the developer of the property with whom you deal.
The determination of ‘Annual Value’ is important in the context of taxation of income from House Property because though the tax under the head ‘Income from house property’ is tax on income, yet it is not in that sense a tax on income but upon inherent capacity of such property to yield income and for this ‘annual value’ is the yardstick.
The following deductions are to be made from the annual value while computing income from house property :-