How to calculate income tax of vacant property
Property ownership is seen as an investment everywhere! But most people don't realize that this ownership is taxable. If you own a property like a villa in Thrissur, be it either on rent or kept vacant, you need to pay taxes to the government. If you own more than one built-up property, you are expected to pay income tax on all your properties except on the self-occupied one. Asset Homes, reputed builders in Kerala tries to give you a run-in on: Taxation on vacant property The Income Tax Act, 1961 defines that income from house property is levied not on the basis of rent but on the potential of the property to yield income for the owner. The taxation is on a notional basis, which is based on the annual value of the property - the sum the property could have generated if it was let out in a year. If the let-out property is vacant for a part of the year, the actual rent received will be the gross annual value of the property & the calculation is the same as in ...