Topic: Notional Rent

This message was edited 1 time. Last update was at 17/02/2010 13:53:01

I have got 2 home loans, both from LICHFL. One @ Pune, where I stay and the second one @ Kolkata, where my parents stay. Now I am eligible for tax exemption for both the loans as per the IT rules. Further I have to show Notional rent on either of the Properties. Please help me with more information. How do I calculate/get the Notional Rent values ?

Hi
If you have two homes, the calculation of income from house property has to be done separately for each home owned by you.
The rent you earn is the income from house property and the interest you pay on your home loan is negative income from house property.
This second house cannot be treated as self-occupied, since that status given to the first house; you can claim self-occupancy for only one house.

Here is where the favour from the tax department ceases.
The tax department requires you pay tax on the notional rent on at least one of the houses. Notional rent is the rent you would have got had you given the house on rent.
Which house to choose from among the two (to be taxed on the basis of notional rent) is left entirely to you; you can also change your choice from year to year.

Fields marked * are mandatory
Got a question?
Just fill in the following:
Name*		E-Mail*
Phone No.*		City
Message (up to 1000 characters)