B/F http://vswaminathan-swamilook.blogspot.com/2018/06/all-about-income-from-house-properties_25.html
To Supplement :
Key Note READS >
Q
KEY NOTE:In Tax Return FORM, there is no in-built mechanism to,-fill in particulars, in case income from HP has to be compulsively claimed at a 'nil' figure.
Reasons for/circumstances in which making such a claim will necessarily arise:
Rate able value not known/ascertainable;
if so, claim not possible, as-
no standard deduction (30% of 'annual value'), though admissible,could be claimed /allowed;
no 'property tax' levied/demanded /paid-
for which , if paid, a deduction is entitled to be claimed / allowed;
based on case law (supra),no notional income could be assessed /tax levied.
If
purchased out of home loan, though entitled to claim deduction for
interest,- also carry forward of resulting loss,- could not be claimed.
On
these grounds,by any logic, failure to report income from HP could not
be faulted, even technically.And, no consequence of interest or penalty
can follow; if Revenue were to take a different view, it could be
contested, successfully !
On
the proposition (of law)- absence of mechanism, hence no taxation,- for
support,could be pressed, and reliance placed on SC Judgment in the
land mark B.C.Srinivasa Setty's case*
* Citation- Palkhivala's Text Book
UQ
Observed :
Tax Return Form (downloaded) to be used for e'filing, does not permit filing the particulars, if to claim 'nil income' on any sustainable ground; that is, except in a case in which taxpayer has income to be included in total income in respect of a house property - either self-occupied or let out or notional income to offer based on 'rate -able value'.
As aforesaid,however, taxpayer will be entitled to claim 'nil income' on any of the grounds / in the circumstances enumerated ; one such circumstance is, - 'Rate able value not known/ascertainable'.
To Dilate:
Points , in brief-
Property tax to be levied on owner /holder of the UNIT
Only on formal /final conveyance of the UNIT (area of the UNIT + UDI) purchaser aquires the status of owner/holder , for said levy
Under the State spl. law (in Karnataka, KAOA is the law)
'RERA' Act is a regulatory enactment; not a complete code by itself; but has to be necessarily read together with the state spl. law
Concepts of phase-wise completion and provisional completion certificate, being the novel creatures of the RERA Act do not impact /impair the legal position as per the state spl. law.
To Know the mentioned legal position, reproduced below, a portion of a published Article (for ready reading) : -
Extract_
To briefly explain:
Under the scheme of the special law, if
read and construed strictly, Flat taker does not become its “owner”, in
its absolute legal sense. For, the price charged by the promoter / paid
by the taker includes consideration, besides for the area of the Flat,
for an undivided interest in the “common areas and facilities”
(specially defined) appurtenant to the Flat; which is required to be
shown separately as specified in clause (m) of sub-section (2) of
Section 3 of the Act. And the Flat taker thus acquires not an absolute
but limited title, rights, and interests in the property paid for,
falling short of ‘ownership’. In that, he becomes entitled to an
exclusive occupation / possession and enjoyment only of the Flat area.
That this is so is obvious, rather necessarily flows, from the fact
that, it is to the society or company formed and registered, not to the
individual flat takers, that the title, rights and interests in the
entire complex (being the whole of the land and building),- including
all other areas but excluding only the Flat area,- is mandated to be
finally conveyed and transferred.
(Highlighted portion is the mostly ill-conceived aspect, albeit crucial /clinching but largely failed to be known or understood, even till date )
(Highlighted portion is the mostly ill-conceived aspect, albeit crucial /clinching but largely failed to be known or understood, even till date )
Suggest to read, for a better understandng and appreciation, the full Text of the published Article -
@ https://taxguru.in/income-tax/law-and-vs-case-law-on-flats-a-critical-study.html
The concept of 'rate-able value' has to be understood in conjunction with the other related concepts, - 'master khata' , issued to seller, and 'bifurcated khata' issued to purchaser.
unfinished
Closely - Related /- connected >
( A MUST Study)
https://www.linkedin.com/pulse/units-flatapt-all-swaminathan-venkataraman/
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