Regarding deduction of TDS on Rent it must to calculate Annual Income/Taxable Income from Property properly. As per income Tax law the Annual value/Taxable value of property is considered as higher of the following:
- Actual rent received or receivable in a year;
- Reasonable expected rent of the property.
[ The reasonable expected rent is deemed to be the sum for which the property might reasonable be expected to be let out from year to year and is normally higher of (a) municipal value; (b) fair rent. However, if the property is covered by a Rent Control Act, then the amount so computed cannot exceed the Standard Rent determinable under the Rent Control Act.]
As mentioned earlier, the assessee has the option to choose only one house as self-occupied property. Rest of property is assessable to income tax on the basis of its annual value.
Deductions:
From the annual value, the following deductions are available under the Income Tax Act:
As mentioned earlier, the assessee has the option to choose only one house as self-occupied property. Rest of property is assessable to income tax on the basis of its annual value.
Deductions:
From the annual value, the following deductions are available under the Income Tax Act:
- Municipal Tax paid.
- 30% of the net annual value of the house property towards Repair & Maintenance charges (Deduction is fixed @ 30% whether assessee incurs more or less amount on repair and maintenance of the house).
- Actual Interest paid on housing loan whether house is actually let out or is deemed to be let-out.
- For self-occupied property, maximum interest on housing loan is restricted to Rs. 1,50,000 p.a., subject to certain other stipulations.
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