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- Income from House Property
- Partly Self Occupied and Partly Let Out House Property
Partly Self Occupied and Partly Let Out House Property
Where a house or part of the house, which is self-occupied, is let out during any part of the previous year, such property is termed as 'Partly self-occupied and partly let out'. Further, such division may be made in the following ways:
In this case, a house property consists of two or more independent units and one or more of which are self-occupied and remaining units are let out.
Treatment
Self-occupied portion & let out portion shall be treated as two separate house (i.e. Unit A & Unit B);
Common value like municipal value, fair rent, standard rent, municipal tax and interest shall be proportionately divided;
Income of both units shall be computed separately.
Case 2) Time wise division
In such case, the house property is self occupied by the assessee for a part of the year and let out for remaining part of the year.
Treatment
In such case, assessee will not get deduction for the self-occupied period and income will be computed as if the property is let out throughout the year. In this regard, it is to be noted that the reasonable expected rent (RER) shall be taken for the full year but the actual rent receivable (ARR) shall be taken only for the let-out period.
Case 3) Area as well as Time wise Division
Merger of Case 1 and Case 2
