Should I pay income Tax on notional rent for house I get not get possession for ?

POSTED BY krish2417 ON July 13, 2014 3:53 pm COMMENTS (2)

I recently purchased a second home that was registered in Sep 2013 and got possession only in April 2014. It is given for rent from May 2014. The question is should I have to pay tax on the notional rent even though i did not get the possession of the house. What should be the notional rent?

2 replies on this article “Should I pay income Tax on notional rent for house I get not get possession for ?”

  1. krish2417 says:

    Thanks for the response. Since the registration happened in the previous financial (2013-14) year and possession came in the next financial year (2014-15). Should the house be declared in the IT return, because if you declare you will have to show a notional rent (zero notional rent will not be accepted)?

    Thanks !!

  2. Credexpert says:

    Dear Krish,

    You are required to calculate notional rent only from the date of possession of the flat, ie, April 2014 and till you have actually rented out the property in May 2014. This notional rent in April 2014 will be based on the actual rent you receive from May on-wards for the respective number of days. If you got possession on 1st April, it will be calculated for 30 days and if your got possession on 15th April, it will be calculated for 15 days.


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