How to save the Tax and file income tax for rent collected.?

I have let out a vacant land for rental for an construction company and the company is paying the rent every month after deducting TDS. How do i file Income tax for the same ? Is there any way how i can get some amount back from TDS?

How to save the Tax and file income tax for rent collected.?
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5 Replies to “How to save the Tax and file income tax for rent collected.?”

  1. The money that you get from construction company is your income and it will be treated as a business income even if you are working as a salaried employee.
    You need to find out the total yearly income (rent + any other) and then use the income tax slab for the current year i.e. 2011.
    If you are a male, then your yearly income upto 1,80,000 is exempt from tax. Hence, if you total income is less than or equal to 1,80,000, the TDS that has been deducted by builder will be refunded by income tax department.

  2. To get eligible refund of tax deducted one has to submit one’s return through a practicing chartered accountant. If you contact your nearby CA office they will guide and submit your return through them to income tax authorities for a reasonable fee.

  3. rent receive is taxed under the head Income from House Property
    it is maximum of the following

    Rent received
    Municipal Valuation
    Fair Rent (as determined by the I-T department)

    it’s better to go to a CA , if you want to do this your self you can get in income tax laws but it’s to complicated for a layman

  4. Rent received is part of income. However, the Property Tax paid to Municipality and thereafter 1/3rd of rent can be deducted as maintenance and on rest one has to pay income tax, provided it is more than taxable income.

  5. this comes under the head – income from house property > let out property
    take whichever is higher between your actual rent and standard rent, this gives you gross annual value(GAV)
    GAV – municipal tax that you have paid = net annual value (NAV)
    from this amount, you can deduct 30% of the same OR interest on your housing loan.
    this will give you your final income which is taxable

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