Deduction - vacancy allowance

[sunil mehta]

A person having more than one residential house property is free to choose one of them as 'self occupied house property' and treat the other as 'deemed let out property'.If the deemed let out propert is in the city other than at a place where he carries on his business and that deemed let out property is not let out at all during the fin.year,whether the asseessee is entitled to take deduction of 'vacancy allowance' for computation of his house property income? 2)Will it make difference if the asseessee sometimes occupies that'deemed let out property' whenever he goes to that city during the year?

AI Summary

Clarification on vacancy allowance deduction under Section 24(1)(ix) for properties not rented but personally used part-year. A person with multiple residential properties can designate one as 'self-occupied' and another as 'deemed let out.' If the deemed let out property is not rented out during the year and is located in a different city from the person's business, the question arises whether a 'vacancy allowance' deduction is applicable. The response clarifies that under section 24(1)(ix) of the Income Tax Act, the property must be vacant for part of the year to qualify for this deduction. If the property is used personally for part of the year, it affects eligibility for the vacancy allowance.