07-08-2011, 07:26 PM
I think Mr. Sohail has answered this aspect of your question.
We pay tax for the income earned in one tax year i.e between July to June. If your property is rented out for five months only in one tax year then the income of that tax year shall be only Rs.1.5 lac which is below taxable
S. 4 says , "income tax shall be imposed for EACH TAX YEAR, at the rate or rates specified in ....... the First Schedule.... on every person who has taxable income for THE YEAR"
Thus First Schedule prescribes rates on income for one Tax Year. When for a TAX YEAR (i.e. period of twelve months ending on June 30), income is below taxalbe limit no tax shall be payable.
When you rent out in February 2011, income of tax year 2011 will only be 1.5 lac, no tax is payable no tax deduction is to be made
We pay tax for the income earned in one tax year i.e between July to June. If your property is rented out for five months only in one tax year then the income of that tax year shall be only Rs.1.5 lac which is below taxable
S. 4 says , "income tax shall be imposed for EACH TAX YEAR, at the rate or rates specified in ....... the First Schedule.... on every person who has taxable income for THE YEAR"
Thus First Schedule prescribes rates on income for one Tax Year. When for a TAX YEAR (i.e. period of twelve months ending on June 30), income is below taxalbe limit no tax shall be payable.
When you rent out in February 2011, income of tax year 2011 will only be 1.5 lac, no tax is payable no tax deduction is to be made
