Académique Documents
Professionnel Documents
Culture Documents
of House Property
Deemed Owner
Transfer to spouse or
to a minor child who is
not a married daughter
Holder of impartible
estate
Member of cooperative society
Prepared by: CA. V.K. SAINI
(9999772095)
Deemed Owner
Person in possession of property.
(Sec 53A)
In case of HUF which have not been
partitioned to members, the Karta of HUF
Person having right in a property for
a period not less than 12 years.
Prepared by: CA. V.K. SAINI
(9999772095)
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Step-B
Higher of the actual rent
received or receivable and
Annual value calculated in
step-A
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Deduction u/s24
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In case of self
occupied House
Property
There will no deduction
as NAV is NIL
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In case of self
occupied House
Property
Deduction is limited to
Rs.30,000/- for each coowner separately
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Capital Asset
House Property is a Capital Asset if it is
Owned by the assessee
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What is transfer?
Transfer includesSale, exchange or relinquishment
The extinguishment of any right in the asset
Compulsory acquisition thereof under any law
Conversion into stock in trade
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Section 54
Section 54F
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Section 54
Exemption of capital gain on transfer of
residential house property
1.
2.
3.
Section 54
4. Assessee has purchase another residential
House Property one year before or two years
after the date on which transfer took place
5. Or has within three years after that date
constructed
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Withdrawal of exemption
Exemption granted on the capital gain shall be
withdrawn ifthe new house property purchased/constructed is
transferred within three years of
purchase/construction
Amount deposited in the capital gain scheme 1988 is
not utilized for purchase/construction in the stipulated
time period
Prepared by: CA. V.K. SAINI
(9999772095)
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Section 54F
Exemption of capital gain on transfer of
capital asset other than house property
If an assess transfer a Long Term Capital asset
other than house property
and purchase house property then he can avail
exemption of this section
Prepared by: CA. V.K. SAINI
(9999772095)
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Amount of exemption
Exemption from Capital Gain shall be avail in
the proportion of amount of sale consideration
invested in the new House Property
In other words amount of exemption shall be
Capital gain* amount invested
sale consideration
Prepared by: CA. V.K. SAINI
(9999772095)
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2.
3.
4.
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What is Asset?
Section 2(ea)(i)
Asset meansAny building or land appurtenant thereto, whether
used for
- residential purpose or
- commercial purpose (if it is vacant or let out) or
- for the purpose of maintaining of guest house
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Not to be included
A House meant exclusive for residential
purpose
A house which is allotted by a company to an
employee or officer or whole time director,
having a gross salary of less than Rs.5 lakhs
Any house for residential or commercial
purpose which form part of stock in trade
Prepared by: CA. V.K. SAINI
(9999772095)
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Not to be included
Any house used for the purpose of any
business or profession carried on by him
Any residential property that has been let out
for a minimum period of 300 days in the
previous years
Any property in the nature of commercial
establishment or complexes
Prepared by: CA. V.K. SAINI
(9999772095)
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Valuation of Property
Valuation of property shall be done as per
rules 3,4 and 5 of part B of schedule III
which is divided in 5 steps
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1.
2.
3.
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Annual Rent
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CASE-2
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Case-1
Property constructed on
freehold land
Property constructed on
Lease hold Land and
unexpired Period of
Lease is 50 years or
more
Where unexpired Period
of Lease is less than 50
years
NMR * 12.5
NMR * 10
NMR * 8
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Case-2
Value of the property shall be higher of the
following:
1. NMR * Capitalization Factor (12.5/10/8)
2. Cost of acquisition /construction + cost of
improvement
Prepared by: CA. V.K. SAINI
(9999772095)
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Remedy to assessee
Valuation of any one house property which is
constructed/acquired after 31.03.1974
and used for his own residential purpose
throughout the year
and whose cost of acquisition/construction +
cost of improvement does not exceed :
Prepared by: CA. V.K. SAINI
(9999772095)
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Remedy to assessee
-Rs.50 lakhs in case house is situated in
Delhi/Mumbai/Kolkata/Chennai
-Rs.25 lakhs in case of other cities
shall be the NMR * Capitalization Factor
(12.5/10/8)
Prepared by: CA. V.K. SAINI
(9999772095)
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Specified citied
Other cities
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Addition
NIL
20% of value as per
rules 3 4 & 5
30% of value
40% of value
FMV of property
(Rule-8)
Prepared by: CA. V.K. SAINI
(9999772095)
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Rule-8
Notwithstanding contained in Rules 3 to 7 the
value of the property shall be estimated to be
the price which, in the opinion of the
Assessing Officer,
it would fetch if sold in the open market on the
valuation date.
Prepared by: CA. V.K. SAINI
(9999772095)
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