Income from House Property - Head of Income, Income Tax Laws Video Lecture | Income Tax Laws - B Com

well girlfriends welcome to free tax
education com3 portal for learning the
accounting and Taxation so today we will
start with the income tax act session 9
it is income from house property part 1
in this session we will learn how to
calculate income from house properties
and basically what it means an income
from house property so without wasting
time what is income from house properly
so instead of 4 giving some definitions
we will check out the features of this
income from house property the first
feature is this income from house
property is based on annual value of the
property
second one is property consists of
building and land this income from house
property is based on annual value we
will learn in briefly how to calculate
this annual value of property in the
next few slides this property consists
of building and land the assessee must
be the owner of such property if you are
owner of this property then you have to
pay the income tax or you have to add
this income from house property if any
person who is not owner of such property
it cannot claim this income under the
house property fourth one the property
should not be used for assesses business
or profession that means if the SEC is
using this property for his business or
profession then the income generated
from such property is not called as
income from house property then it is
added or this expenses let's not add
expenses incurred for maintaining the
house property will be deducted from the
income from business and profit I hope
you clearly understand this
that is based on ethnic value the
property consists of building in land as
I see must be the owner he must be the
owner and the property should not be
used for assessees business and
profession next is computation of income
from self occupied house property there
are two types of house property one is
self up to bat another is laid out so
self occupied means the owner itself
living there and not given on rent so if
you see this table or formula or format
there are no values except in interest
on home loan under section 24 P so if
you have a house property you which is
self occupied then you have to calculate
only the interest on home loan up to
rupees to Lex
that means you have a limit of rupees to
Lex nothing else so next is we will go
directly to the computation of income
from laid out house property it means
how we calculate the income from house
property first one is if you see this
formula the first one is gross annual
value that is gav we will see how to
calculate gross annual value less
municipal taxes paid principal taxes
paid by the owner will be deducted from
the gross annual value after deduction
of this Texas the Nate well new annual
when we were Alice from that need annual
value we will deduct standard deduction
at a rate of 30 percent and interest on
loan under section 24 V the standard
deduction at the 30 percent of nav is
under section 24 a and the interest on
loan is 24 B this musical excess
interest standard deduction and interest
on loan we will learn in brief upcoming
next session that is session promoter
next is ad recovery or unrealized rent
under Section 25-18 that is a if in a
previous year's assessee is not able to
recover its rent from this previous
tenant and suddenly if he paid that
tenant paid the unrealized rent to the
owner then that rent for for the
previous year will be added in this year
within this financial year the next is
income from house property before
considering as your sovereignty
so ad are your sovereign receive say
suppose you increase increase the rent
and some areas are there so suppose some
pending amount is there so that one is
also if you received in this year we
have to add the current financial year
in which you receive this amount less
deduction under section 24 B 50% of our
received as you know the standard
deduction is there at the rate of 30% so
at that time when those areas are there
or unrealized rent is there so I
specifically other servant so at the
time we we have not taken this 30%
reduction so whenever they received our
yourself rent to receive you can take it
or do certain deductions from earlier
season so whatever the value is
remaining here is net income from house
property so this is a simple format if
you know the three or four things
clearly you can put these figures in
this format and you can calculate net
income from house property so next one
is how to calculate the Gav that is
gross annual value the main point in the
first formula so this is the way we have
to calculate this Gav Gav means gross
annual value if you remember the first
point this clearly mentioned that
this income from house property the
value is dependent on annual value so
how the annual value is calculated will
be careful so first one is principal
value the value we will learn in brief
but I will give you some explanation on
this so value determined by the
Municipal Corporation for charging a
taxes that is called as a municipal
values next one is fair rental value of
emotional integrity that means if
similar or identical flat can see me the
area is there so if if you don't have
know about your rent that how much did
you can take or how much rent you can
receive so you can calculate our fair
rental value that means similar or
identical flats or flat or property if
if the property is present in the
similar Jania so what will be the rate
he charged that that person charged its
tenant that can be the fair rental value
so we need to take the higher of one and
two it is municipal value or farewell
fair rental value so if the municipal
value is higher then we need to take
this mis'able value if we're interval is
there more then we will pick second
after that we need to compare third one
at the standard with standard rate here
in Becket this clear written if
application if applicable means standard
green means the rain control act is
where in some areas in metros
specification by the me where the old
buildings are there and the rain little
act is thick so if the rain is
controlled by this act this fall is a
standard read the owners cannot charge
more than this more than the rate
applicable in the that act so we need to
compare once again higher of one or two
and standard rate
this is null expect expected rent lower
of step three and four that means we
need to compare first one and two higher
of two and then whatever the value is
there you need to compare against
standard rate whichever is lower never
luara this as a reason a reasonable
expectation six point is their annual
rent total rent assuming the property to
be laid out throughout the previous year
it means what we considered as a rent
will be received you know whatever the
regulation throughout the year we need
to get paid that it was five thousand is
rent so we need to calculate five
thousand input wealth that is sixty
thousand rupees
you know the unrealized rent aspirin for
unrealized rent means if the tenant is
there but he didn't pay that amount by
some reasons so that is called as
unrealized rent it will be deducted from
the annual rent actually in this step 6
- step seven that means the amulet less
unrealizable means whatever the rent is
not realized from a tenant is deducted
from the expected value ninth one is
higher of reasonable expected rent
actually means we need to compare once
again fifth stage and the eighth stage
higher of this mega rent or actual we
need to take out and then deduct back
and see allowance that is
proportionately on basis of my rental
yes if out of twelve months
the property's vacant for two months
then that is that will be the that rent
will be lifted from the ninth one so
after deducting from step nine to from
10 from step nine the eleven point is
there that is gross annual value which
will be included here
a first computation of income from that
outpost property so we will see some
important terms and definition before
proceeding to this involved in terms in
house property I hope you understand
this this formula and if you want to
understand much more than this you can
download it from our website and tried
by on your own so how to calculate -
clearly shown that the calculation on
basis of formula in Excel in Excel that
you can how we can calculate the income
from property or how you can calculate
the gross annual value now we will see
the important terms in house property
first one is invincible value principle
value means earning capacity in terms of
money of house determined by Municipal
Corporation and which this value is
determined by musical populations not by
owner or any third party fair rent the
rent applicable to the similar or
identical preferred a in the same
location as we discussed earlier same
property in a similar area whatever the
wind applicable is there so as far as a
parent third one is standard rent
standard grid is a fixed rent or front
Roland and it is applicable where wage
Control Act is applicable landlord
cannot charge reigned above the mention
rent in act I already explained to you
but once again using the standard rent
must be applicable to that place if it
is not acceptable then you cannot take
or avoid to take this reigned from
calculation of income from hospitality
next one is unrealized rent arrange not
paid by tenant to the owner though owner
food is efforts to recover the red that
means it is not just forgived
by the owner
but this rain his owner has tried
several times my putting some pressure
even legal notice try to recover this
country less rain but whatsoever he done
didn't respond to him and never paid
this land so that his corn is unrealized
rent last one is lost because of vacancy
loss of rent income because of packet
house or no tenant that means sometimes
the homes are vacant because nobody is
ready to take on rent this properties so
that particular portion is called as a
loss because of vacancy that was out of
12 months the property is vacant for six
months then and if value is there
suppose five thousand rupees per month
as a rent well do then the loss of
vacancy is five thousand into six month
that is thirty thousand rupees
this is lost because of you can see I
hope you understand this important terms
in house property so in this session
we'll learn some basic features of
income from house property then we learn
about how to get live down income from
horse property next we learn how to get
lip gloss and your value and last one we
leave learn about important terms in HP
at this house properly so thanks for
visiting free taxi do.com
that's it from the session bye-bye