it is requested that how much tax deducted if rent give is give in month of Feb-20011 amounting Rs. 30,000 as the closing financial year 30 June please if possible reference of section
Regard!
Muhammad rehman
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Muhammad Rehman</i>
<br />it is requested that how much tax deducted if rent give is give in month of Feb-20011 amounting Rs. 30,000 as the closing financial year 30 June please if possible reference of section
Regard!
Muhammad rehman
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
As per Section 15 and Division VI of part 1 of first schedule of ITO 2001. not Tax is payable if rental income is below 150,000 if the landlord whose tax is required to be deducted is first ever month rent (newly constructed property)then no tax is required to deduct as his income is Rs. 150,000 (from Feb to Jun.)[this all is for individual.
my question is that if we give rent of any amount so we first calculated the remaining month for closing financial year for example
we give rent(Rs.30,000) FEB-211 so the remaining month feb-march-apr,may and june i mean five month (30,000*5=150,000) so it is exempt or we caculate all 12 months income do not see closing financial year
http//www.accountancy.com.pk/forum/topic.asp?TOPIC_ID=9203
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