Property Solutions

Computation of Taxation for House Property

Posted on July 15, 2015 at 8:56 am

Income from house property is one of head of taxation under income tax act imposed on owner of house. Property under this head includes house, office, godown, factory, hall, shop, auditorium etc and also any land which is physically attached with their building. Few essential terms used for assessment of taxability of house property can be annual value, taxable value, assessment year etc.

Annual value of property, which is going to be taxed, is regarded as its taxable value in case when property is used by income tax department for business or professions. Further procedure involves deducting municipal value and unrealized rent from annual value to reach net annual value. From such amount, thirty percent of net annual value is deducted and also interest on borrowed amount to reach exact figure of income from house property. Owner of large house property usually hires an advocate for accurate computation of their taxation figures and proper compliance of taxation regulations.

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