Income from Property Flashcards
What is Chargeable Rent?
The sum of following is called chargeable rent:
1- Rent
2- 1/10th of Security
3- Forfeited Deposits for sale of immoveable property
Under what circumstances, rent is not compared with ALV?
or
Rent of FMV of rent whichever is higher is taxable. Write its exceptions?
Self hiring:
A situation in which an employee or his spouse owns an accomodation, lets out the same to employer who provides the same accomodation to employee as a perquisite.
Following points emerge in this case:
1- The concept of actual rent or ALV does not aapply
2- Actual rent paid/payable is taxable
3- The same 45% of B.S or FMV of rent WEIH is taxable under the head salary
Cases and Treatments of unadjustable amounts received in respect of Building?
Cases
1- Only 1 tenant (amt/10)
2- New tenant comes and leaves in same tax year (No treatment)
3- No new tenant, only old left the property (No treatment)
4- Old tenant leaves and new comes
Under what conditions an unpaid rent is considered as irrecoverable?
1- Tenancy was bonafide
2- Defaulting tenant has vacated or steps have been taken to compel him to vacate the property
3- The defaulting person is not in occupation of any other property of the person
4- Legal proceedings have been initiated to recover rent or there are resonable basis that the legal proceedings shall be useless
5- Unpaid rent was previously chargeable to tax
What is agricultural income?
Any income/rent from land situated in pakistan from:
1-Agriculture
2-performance of any agricultural process to carry produce fit to market
3- Sale of such produce in respect of which no other process has been performed except agricultural process
4-Any land owned or occupied for use of agricultural process.
Explain treatment of loss in case of income from property and also can it be carried forward?
When deductible allowances are more than chargeable rent, then loss can be adjusted under any bother head of income except salary.
Unadjusted loss cannot be carried forward.
