Query on notional rental income if the flat is vacant

POSTED BY Soms ON November 15, 2012 5:31 pm COMMENTS (4)

Hi,

I own a house in chennai (Home-A), and currently I am residing there. And I have another house in chennai (Home-B). Currenty it is vacant.

I am not claiming HRA part.  I can claim Principal component for max. 1 Lakh and Interest component for max 1.5 Lakh for the home loan if it is occupied by me.

From this forum I came to know that we can claim the full interest component if the flat is given for rent. But in my case it is vacant.

What is the minimum Notional Rental Income (in chennai) I can show, so that I can get the tax benefit for the full interest component?

Thanks,
Soms

4 replies on this article “Query on notional rental income if the flat is vacant”

  1. manickkam says:

    I, somehow, believe that Rs. 2000/- can be put as a rental income in this case. But, I don’t know what is the minimum amount that can be put. It is better to consult with some tax expert and get his opinion here.

  2. Bunker says:

    Notional Rental income must be declared for such vacant home.

    Below NDTV article explains all the details:
    http://profit.ndtv.com/news/your-money/article-home-loan-and-hra-how-the-tax-works-out-317314?ch&pfrom=home-business

    However, how to compute notional rent for a vacant apartment unit is not clear. Some other website forums I read, people give the rent of a similar flat in that building as notional rent income. Whether that is correct, I am not sure.

  3. Hanumantha Raju says:

    while submitting the IT returns you need to show some nominal rent . check with some tax consultant

  4. Biswa Singh says:

    I dont think there is anything like minimum Notional Rental Income. If you have taken House B on loan ( i mean if its your second house purchase) the the whole interest component is tax free irrecspective of the house is vacant or rented.

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