Dear Mr SreeKanth,
How are you doing. I have read your articles on Budget-2019 & highlights of Budget. That means NRIs do not get the Tax exemption upto 5 Lacs income ? So the existing Tax slab remains unchanged for NRIs who have indian income.
On the other hand, I have 5 houses in India & all are built on a single plot. In one house I am staying & let out 4 houses for rent. I am filing my IT returns by considering the rents from all 4 houses & paying tax if any after deductions. I saw your below article,
- Currently, income tax on notional rent is payable if one has more than one self-occupied house. No tax on notional rent on Second Self-occupied house has been proposed. So, you can now hold 2 Self-occupied properties and don’t have to show the rental income from second SoP as notional rent.
1 Answers
Dear Rajanna,
If one has a taxable income (Gross income - all eligible tax deductions) of below Rs 5 Lakh then tax rebate is applicable and tax liability can come to NIL.
From Budget speech - "Currently, income tax on notional rent is payable if one has more than one self-occupied house. Considering the difficulty of the middle class having to maintain families at two locations on account of their job, children’s education, care of parents etc. I (FM) am proposing to exempt levy of income tax on notional rent on a second self-occupied house."
In your case, all Four properties have been occupied by tenants and they are paying rentals to you. Hence, you may not be eligible (honestly) to claim the said provision.
Just to add to my abv response..
Can NRIs claim rebate under section 87A?
No, this rebate is only allowed for Resident Indians. Therefore, taxpayers qualifying as non-residents are not eligible for a rebate under 87A.
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