Q&A: Tax

Vaibhav Sankla; Director, H&R Block India

Rental Income

Q: I took possession of my second house (an apartment in a multi-storey building complex built by a private builder) in financial year 2010-2011. In my tax return for assessment year 2011-12, I calculated annual letting value at the rate Rs 15,000 per month, which was the expected rent, because the apartment had not been let out. Due to various developments, like inauguration of a clubhouse within the complex and opening of a number of shops outside the complex, the rent shot up and I got an offer of Rs 21,000 a month in May 2011. I finally rented out this flat in February 2012 at Rs 29,000 a month. How should I calculate the annual letting value for my return for assessment year 2012-13. What will be the basis and how much would be the annual letting value? MK DHAR

A: Since you have given the house on rent from February 2012, the annual value of the property would be equal to the amount of rent actually received for FY 2011-12. You need not declare notional rental for the property till January 2012, as the property was vacant during this period. Note that if the property is vacant for the entire year, then you have to reflect notional rental for the entire year.

Exemption for Donation

Q: I had made a donation of Rs 20,000 to an NGO in June 2010. Donations to this particular NGO are exempted under 80G. However, my CA did not take this into account. Please let me know whether there is a provision of filing a revised income tax return for FY 10-11(assessment year 2011-12). My return was filed in July 2011. FARAAZ

A: Since the original return was filed within the due date, the same can be revised. You can revise your return to claim this deduction. Revised return can be filed before March 31, 2013 or before completion of assessment, whichever is earlier.