Do I pay tax on rent if the flat was vacant?
A property that is let out but vacant for part of the year can reduce rent for those months. A property that is not let out and not self-occupied beyond two properties is deemed let-out at a fair rent. A property occupied only by you is self-occupied. We apply the rule property by property.
Can I claim the standard deduction on rent?
Yes. A flat 30% of the net annual value is allowed as standard deduction for repairs and maintenance, regardless of the actual spend. You cannot also claim actual repair costs. This applies in both tax regimes for let-out property.
What happens to interest paid before I got possession?
Pre-construction interest is allowed in five equal annual instalments starting from the year the property is completed, subject to the overall limits. We keep a schedule of the interest in each year of the construction period.
How is rent taxed for co-owners?
Each co-owner reports rent and interest in the ratio of their ownership, if the share is defined. Each co-owner needs his own PAN and files his own return. We split the income and deductions according to the title documents.
Is municipal tax deductible?
Municipal taxes paid by the owner during the year are deducted from the rent to arrive at the net annual value. Taxes paid by the tenant are not. Keep the municipal tax receipts for each property.
What are arrears of rent and how are they taxed?
Arrears of rent received later, or unrealised rent recovered later, are taxed in the year of receipt after a 30% deduction, even if it relates to earlier years. We compute and report them separately so the department does not see an unexplained credit.
What is the last date to file an income tax return?
For individuals and HUFs who do not need an audit, the usual due date is 31 July after the financial year ends. Cases needing a tax audit normally get 31 October, and companies with transfer pricing reports 30 November. The government sometimes extends dates, so we confirm the notified date for your year before we start.
What happens if I miss the ITR due date?
You can still file a belated return under section 139(4), generally until 31 December of the assessment year, but with a late fee under section 234F (₹5,000, or ₹1,000 if total income is up to ₹5 lakh) and interest under 234A. Most losses cannot be carried forward in a belated return, which can cost more than the fee itself.
Do I need to e-verify my return after filing?
Yes. A return is treated as filed only after e-verification, which must be completed within 30 days of filing. You can verify with Aadhaar OTP, net banking, a pre-validated bank account or a demat account. We guide you through it and confirm the processed status on the portal afterwards.
